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The city is located in the countryside of Minas Gerais, at an altitude of 636 meters above sea level. It has a tropical climate with two well-defined seasons: dry and rainy. The average temperature is 21 °C (70 °F), being its hottest month January, with 26 °C (79 °F) and coolest July, with 17 °C (63 ˚F). The annual rainfall reaches 1 000 mm/year. In 2007 Governador Valadares had a GDP R$6 billion ($2 billion US dollars), being the third largest economy in Minas Gerais after Belo Horizonte and Uberlândia; it also ranks as one of the most developed cities in Brazil's interior region according to IPEA's classification system for Brazilian municipalities ("Nível Intermediário").