Teixeira de Freitas is a city in the extreme south of the Brazilian state of Bahia, on the margins of BR-101 highway. It is one of the largest cities in the state, with a population estimated as of 2020[update] at 162,438 inhabitants in an area of 1,166 km2. The city had its origin as a crossroads, and has always maintained its character as a place that draws entrepreneurs from other regions. Major expansion of industry in the area, combined with the growth of eucalyptus plantations, has adversely impacted small-scale agriculture in the surrounding rural areas, resulting in declining population in those rural areas. Teixeira de Freitas has also a busy commercial district and the economy has developed a lot lately thanks to the migration of the population from surrounding towns.[citation needed] It has an agricultural economy, based in cattle ranching and raising crops. There is also a large production of Eucalyptus destined to the extraction of cellulose on factories in the region. The city is a regional commercial center, serving approximately 14 municipalities.[citation needed]