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Brazil will overtake the UK to become the world's sixth biggest economy this year, according to new projections. The Latin American giant's GDP for 2011 is expected to hit $2.44 trillion (£1.51 trillion) compared with $2.43 trillion for the UK, the latest monthly forecasts from the Economist Intelligence Unit (EIU (SNP: ^EIUY - news) ) show. This will see Brazil, which last year overtook Italy to become the world's seventh biggest economy, move up one more place to sixth with the UK falling to seventh.
Robert Wood, the EIU's chief economist on Brazil, said the country's surge up the table owed much to a growing consumer class and a booming trade relationship with China, based on the Asian giant's need for commodities such as soy and iron ore.
"It's partly the story of the lower income classes rising up in Brazil to join the middle-class and partly the sheer size of the population of nearly 200m," said Mr Wood.
"This also links in with Brazil's emergence in terms of being dragged up by demand from China. We are in the middle of a commodity super-cycle that will last for some time but at some point the really good times Brazil is enjoying will cool off a bit."
According to the EIU, Brazil will lose sixth place to India in 2013 but regain it in 2014 the year it will host the World Cup - when its GDP overtakes that of France.
The forecasts suggest that Brazil's economy will be bigger than any in Europe (Chicago Options: ^REURUSD - news) by 2020 when it overtakes Germany to become the fifth biggest globally after China, by then the world's leading economy measured in dollars, the US, India and Japan (EUREX: FMJP.EX - news) .
The UK will find itself placed ninth in the global league table in 2020, predicts EIU, with Germany sixth, Russia seventh and France eighth.
Brazil grew by 7.5pc last year after comfortably weathering the financial crisis of 2008 and 2009. The EIU predicts it will see growth of 3pc this year and 3.5pc in 2012, compared with 0.7pc for both years in the UK
Isn't this great? Last century was the Anglo century, now it's the BRICS(Brazil, Russia, India, China and my beloved South Africa).
Already 4 BRICS are among the top 10.
Isn't this great? Last century was the Anglo century, now it's the BRICS(Brazil, Russia, India, China and my beloved South Africa).
Already 4 BRICS are among the top 10.
Not to undermine the fantastic achievements of the Brazilian government and their economy, but I think it will be "great" when/if they can provide a standard of living for their people that is on par with the UK and other Western nations. Plus, Brazil has about 200m people and the UK has about 60m.
Hopefully they can one day, go on Brazil
Last edited by CityLover9; 11-02-2011 at 10:50 AM..
They used the nominal GDP to measure this. What else do you want?
Yes the standard of living are higher in the UK, but Brazil is not stuck here, it has a large and a growing middle-class, give it a few decades and standard of living will be almost similar to the rest of the developed Western world. Let us give time a time.
Brazil, as well as China and India still have a long way to go before they can provide a first world standard of living to most of their citizens. Per capita income is way higher in the UK, France and Germany and this will be the case for a long time. Who cares about absolute numbers? Per capita it is still the western countries that top the list, plus Korea and Japan.
Even GDP per capita is pretty useless, especially when currencies are devalued meaning said country/city falls. But yes, the BRICS will never rival the West in terms of standard of living and overall wealth, sustainability, health, education and a number of other important factors. They aren't called Sweatshop Economies for nothing, you know?
But congratulations to Brazil for overtaking the UK this year, and soon to take over France and Germany.
Jeez, give them a time, give them at least 50 years, with this growth the Americas, UKs and Frances will look like mini Somalias compared to the BRICS
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