Monday, October 31, 2011

Brazil to Surpass U.K. in 2011 to Be No. 6 Economy

Brazil's amazing economic rise: It will surpass the U.K. this year to become the world's sixth largest economy.
As recently as seven years ago in 2004, the U.K. economy ($2.2 trillion in GDP) was more than three times larger than Brazil's economy ($665 billion, see chart).  And even as recently as four years ago in 2007, the U.K. as the world's sixth largest economy, produced more than twice as much economic output as Brazil: $2.8 trillion of GDP for the U.K. vs. less than $1.4 trillion for Brazil, based on IMF data available here (see chart above).   

But then the global economic slowdown took a huge toll on the U.K.'s economy and its GDP fell 20% between 2007 and 2010, while Brazil's GDP soared by 52% during that period.  

Now the IMF is forecasting that Brazil's economy will surpass the size of the U.K. economy this year for the first time ever, and will overtake the U.K. to become the sixth largest economy in the world, behind the U.S., China, Japan, Germany and France.  And based on IMF projections, Brazil will surpass France in 2015 to become the world's fifth largest economy.     

Related: Here's a news report

15 Comments:

At 10/31/2011 6:31 PM, Blogger arbitrage789 said...

A somewhat related issue is how the size of the Japanese economy has been declining substantially, relative to the world economy, over the last several years.

As for us, too many people take it for granted that the U.S will always be the preeminent superpower, no matter how anti-growth our economic policies may be.

 
At 10/31/2011 7:25 PM, Blogger rjs said...

not to argue, but the CIA has UK & Brazil at 7 & 8...they have Russia #6 (2010 data)

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html

close enough that brazil could well top both...

within 10 years, the top five will be china, US, india, japan & brazil...

 
At 10/31/2011 9:44 PM, Blogger Mark J. Perry said...

Check here and you'll see that IMF, World Bank and CIA all have the same rankings for the top six countries for GDP.

 
At 11/01/2011 10:50 AM, Blogger Jon said...

Growth has coincided with the election of the very leftist Lula government. Heavy emphasis on reducing inequality and improving government sponsored social programs.

The places that stay mired in free market policies (Haiti, all of Africa, Latin America) remain in the doldrums.

 
At 11/01/2011 11:08 AM, Blogger Mike said...

Jon,

"The places that stay mired in free market policies (Haiti, all of Africa, Latin America)"

Those aren't free markets as we know them, they're some of the most corrupt places in the world.

I'm guessing that the free market policies that Brazil has embraced are what has brought their unemployment from 10% to 6% in an extremely short time. If that unemployment rate was brought down on the backs of a few tax payers (through social programs and income redisistribution) it'll jet back up and they'll fall on their face.

 
At 11/01/2011 11:45 AM, Blogger Paul said...

Jon,

"Growth has coincided with the election of the very leftist Lula government."

Lula is a leftist, but his economic policies were more moderate, competent than his predecessors. You want to see a real leftist in action, go north to the clusterf*ck called Venezuela. But I'm sure Chavez is another one of your commie heroes.

 
At 11/01/2011 12:41 PM, Blogger Jon said...

Those aren't free markets as we know them,

Nobody is "truly" free market. There is no such thing. Which is MORE free market though? Haiti has zero government regulation, irrelevant minimum wage requirements, tiny to non-existent tariffs. A free market paradise. The leftist government of Aristide is literally banned at this point. Why? He wanted to do all those leftist things that are opposed by neoliberal elements. Increases in minimum wage (right now 31 cents an hour), taxation, education, health services. All the supposed harmful to business policies. But he's been blocked by Washington and freedom remains. His coup was supported by Washington (in deed, not in word). He was replaced by a World Bank official that was Washington's choice, Marc Bazin. Why? To impose neoliberalism.

 
At 11/01/2011 3:15 PM, Blogger Paul said...

Jon,

"Haiti has zero government regulation, irrelevant minimum wage requirements, tiny to non-existent tariffs. A free market paradise."

This is your usual nonsense. Where, for example, is the ability to enforce contracts? Haiti is basically an anarchy, not the same as a free market paradise.

 
At 11/01/2011 3:25 PM, Blogger sethstorm said...

If the US still adhered to the Monroe Doctrine, South America wouldnt be a problem.

Handing off the US's sovereignty and power to foreign nations (whether by trade or other means) has been a huge mistake.

 
At 11/01/2011 4:31 PM, Blogger Jon said...

Where, for example, is the ability to enforce contracts?

With what? Government intervention? Regulatory oversight? What are you suggesting? Multi-national corporations have security details. Let the free market enforce contracts.

 
At 11/01/2011 6:05 PM, Blogger J H Schumacher said...

Jon,

According to the Heritage Foundations Economic Freedom index, Haiti is 132 out of 169 nations. Historically many
African nations have been just as bad.

 
At 11/01/2011 7:28 PM, Blogger Paul said...

Jon,

yeah, with government , as referee. You must be purposely confusing anarchy with laissez faire. Nobody could be that stupid.

 
At 11/01/2011 9:57 PM, OpenID Sprewell said...

Paul, he is that stupid, as I already debunked his canard of Haiti as "free market" exemplar months ago, along other standard leftie drivel, but he just keeps repeating his nonsense regardless. He claims to be a former "right winger" and Christian who switched religions to socialism, so faith is the only thing he goes on, which now apparently means imbibing the leftie gospel instead of his Bible, evidence be damned.

 
At 11/11/2011 12:03 PM, Blogger FredBrazil said...

m a brazilian and i can tell you the problem that we have here is called high interest rates and gov. taxes. The prime rate here is 11% a year, in Greece and Italy (broken economies)for example is 7%. One ipad, iphone here is twice the price than in U.S.. Banks here charge interest rates on checks accounts and credit cards 10% a month, 35% of the Santander profits were made here in Brazil, larger than Continental Europe. Then we need lower taxes and interest rates to grow more........ We have a huge consumer market, a solid economy, then: Come to invest here BANKS, Pension funds, house builders.......You re all welcome.

 
At 11/11/2011 12:04 PM, Blogger FredBrazil said...

This comment has been removed by the author.

 

Post a Comment

Links to this post:

Create a Link

<< Home