Monte Carmelo is a Brazilian municipality located in the northwest of the state of Minas Gerais.

It is 33 km (21 mi) north of the important federal highway Br-365, which links the state boundary of Goiásin the west to Montes Claros in the northeast.

A rich landowner, Dona Clara Chaves, donated land measuring six square leagues to the new settlers to build a chapel dedicated to Our Lady of Carmo.

Monte Carmelo is in the top tier of municipalities in the state with regard to economic and social development.

Monte Carmelo is considered the capital of the roof tile due to the number of ceramic industries.

[4] Monte Carmelo has a large portion of its economy based on agriculture and livestock raising.

[8] The highest ranking municipality in Minas Gerais in 2000 was Poços de Caldas with 0.841, while the lowest was Setubinha with 0.568.

In more recent statistics (considering 5,507 municipalities) Manari in the state of Pernambuco has the lowest rating in the country—0,467—putting it in last place.