Mundo Novo is located in the São Miguel do Araguaia Microregion in the extreme north-west of the state.

Highway connections are made by GO-070 / Goianira / Inhumas / Itaberaí / BR-070 / Goiás / GO-164 / Faina / Araguapaz / Nova Crixás / GO-156 for 42 km.

In January 2005 the Mayor was Maria Beatriz Alves Azambuja and the Vice-mayor was Carlos Osário Lacerda.

The economy is based on cattle raising, agriculture, services, government employment, wood extraction, and modest transformation industries.

In 2006 the main agricultural products were pineapple, squash, cotton, rice, sugarcane, sesame, manioc, watermelon, and corn.

It ranks 0.692 on the 2000 United Nations Human Development Index and is 216 out of 242 municipalities in the state and 3,118 out of 5,507 in the country.