Brazil is set to become the world’s sixth economy by the end of 2011, if projections by the International Monetary Fund (IMF) and two leading economic consultancies, the EIU and the BMI, are correct.
Brazil will overtake the UK, demoting it to the number 7 spot and continuing a trend up the ranks of global economies after last year leaving Italy behind at number 8.
According to the predictions, Brazil’s GDP will reach $2.44tn by the end of the year, narrowly outstripping the UK’s – which is set to reach $2.43tn.
Brazil’s economy grew by 7.5% last year after minimal impact by the financial crisis which most countries had to weather in 2008-2009.
The Brazilian economy may not have boomed quite as much as was hoped this year, but it is still expected to grow by at least 3%, and is predicted to grow by a slightly higher 3.5% in 2012. (This compares with growth in the UK of only 0.7% for this and next year.)
The figures have not come as a surprise to analysts, whose extrapolations have predicted the rise in the Brazilian economy for years. However, they have arrived more quickly than many expected – mainly due to the greater effects of the global financial crisis in other countries.
Read the full article on The Rio Times, where I am Senior Contributing Reporter.