The beginning of the activities in the mine coincided with an astonishing increase to the economic growth rate in Paracatu. During the five years following construction, Paracatu's Gross Regional Product (GRP) grew at an annual rate of 14 per cent, compared to two per cent for the State. From 1991 to 1997 the local economy averaged a growth rate of six per cent, almost twice as high as that of Minas Gerais.

Despite the population doubling over the last 30 years, this steady GRP growth ensured dramatic increases in GRP per capita, moving on from a per capita income that was half that of Minas Gerais in 1985 to over it in just five years.

The appearance of RPM brought with it radical changes in the structure of local production. As can be seen in figure five, the contribution of the secondary sector (which in Brazil includes mining, processing and refining) to GRP jumped from eight per cent in 1985 to 44 per cent in 1990. The statistics available, however, suggest that most of that increment reflects the value added by the company, rather than a process of further economic diversification.

This boost in economic growth was not conclusively reflected in the latest indicators of social welfare. Poverty, for instance, followed regional trends, going up again after having declined for a decade. There were no reliable local statistics for unemployment at the time of the study, though the large population growth rate and limited new jobs suggest that a decline in unemployment would be unlikely. Independent consultants identified high local sensitivity regarding a local perception of increasing income inequalities, allegedly accentuated by RPM. Some local academics have identified as well a local inflationary process, which would have started with inception, back in 1985.