According to the newest projections, Brazil is set to overtake the UK and become the world’s sixth-largest economy this year.
The South American giant’s gross domestic product (GDP) is predicted to hit $2.44 trillion (£1.51 trillion) this year, compared to the UK’s $2.43 trillion GDP. The figures come from the latest Economist Intelligence Unit (EIU) figures.
Moving on up
Brazil, which overtook Italy last year as the world’s seventh biggest economy, will now push the UK into seventh place.
The EIU’s chief economist on Brazil, Robert Wood, has said that Brazil’s rapid climb can be attributed to the country’s growing consumer class. Brazil also has a growing and prospering trade relationship with China. Though China is famous for its exports, the Asian giant imports a great deal of iron ore and soy from Brazil.
Wood also stated that while the lower class joining the middle class is a huge factor, Brazil’s sheer size and 200 million population are spurring the country towards incredible growth.
Experts also say that while Brazil is feeding huge demands of a “commody super-cycle” in China, the demand will cool off eventually.
Brazil grew by 7.5% last year, and was one of the only major world economies to comfortably weather the financial crisis in 2008 and 2009. According to EIU predictions, the economy is set to grow 3% this year and 3.5% in 2012. Comparatively, growth is projected to be just 0.7% for both years in the UK.
The years ahead
Interestingly, the EIU also predicts that Brazil will lose its new-found status as the world’s sixth largest economy in just a year’s time, as India is predicted to take the spot in 2013.
Brazil is then projected to overtake France in the tables by the year 2014, the year the country hosts the World Cup.
Further forecasts suggest that Brazil’s economy will grow to an even more formidable size by the year 2020, which is when experts predict its economy will be larger than any in Europe. This means the South American giant will overtake Germany, Europe’s largest economy, in just a few years.
By 2020, the UK is predicted to rank ninth in the global economy rankings, according to EIU. Ahead of all of Europe will be China, which will then be the world’s leading economy when measured in dollars.
The United States, India, and Japan are predicted to follow China in the GDP rankings, respectively.
Germany is predicted to fall to the sixth largest economy by 2020, while Russia is set to become seventh and France will fall to eighth place.