The economy is based on charcoal production, cattle raising and subsistence agriculture, with the main crops being beans, manioc, sugarcane, and corn.
[2] Neighboring municipalities are: Cristália, Grão Mogol, Virgem da Lapa, Berilo, Francisco Badaró, Chapada do Norte, Leme do Prado, and Botumirim.
[3] José Gonçalves de Minas is ranked low on the MHDI and was one of the poorest municipalities in the state and in the country in 2000.
The above figures can be compared with those of Poços de Caldas, which had an MHDI of .841, the highest in the state of Minas Gerais.
The lowest was Manari in the state of Pernambuco with an MHDI of .467 out of a total of 5504 municipalities in the country as of 2004[update].