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Brazil’s economy overtakes the UK

New figures today confirm that the Brazilian economy is bigger than the UK.

 
Brazil’s economy overtakes the UK

‘They have many more people, great resource wealth, a good education system and they’ve achieved macroeconomic stability,’ says Tim Ohlenburg, an economist at the CEBR, of Brazil after figures today finally confirmed that the so-called BRIC economy has overtaken the UK.

The 2.7% GDP growth achieved in 2011, which propelled Brazil to sixth place in the world economic league tables, was actually disappointing: for close observers of the Brazilian economy, it was shy of their expectations. For others it may seem like a small number in comparison to the sort of runaway figures still being achieved by China, or even by Brazil in the past: Latin American's leading economy recorded GDP growth of 7.5% in 2010.

Much of the blame for the recent slowdown is attributed to problems arising elsewhere around the globe, particularly the eurozone, which has seen money fly into Brazil to take advantage of the double digit interest rates put in place to tame inflation. Brazilian industrialists have subsequently blamed a strengthened real for their woes.

Still, it all looks healthier than the UK's economy where debt-cutting efforts will keep a check on any short term economic growth, consumers and businesses are too scared to spend their money, unemployment is rising and exports depend on the health of Europe (rather than China, Brazil's biggest trading partner).

Longer term, BlackRock Latin American Investment Trust manager Will Landers adds several other reasons for Brazil’s rapid ascent: ‘record low levels of unemployment, inflation being kept under control and an ambitious infrastructure investment program (including preparations for the 2014 World Cup and 2016 Olympics)’. 

‘In addition there is continued growth coming from the increase in the middle classes and associated pent-up demand in credit and housing,’ added the Brazilian born fund manager in a statement today.

And Ohlenburg added that its only a matter of time before Brazil overtakes the fourth and fifth largest economies, Germany and France respectively.

Brazil's finance minister Guido Mantega reportedly said: 'It is not important to be the world's sixth-biggest economy, but to be among the most dynamic economies, and with sustainable growth.'

8 comments so far. Why not have your say?

wayne roberts

Mar 06, 2012 at 17:31

I thought Brazil had overtaken the UK years ago! Has Greece overtaken us yet?

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Franco

Mar 06, 2012 at 21:52

Our priority is not economic growth, it is to play the big shot along side the US with our H bombs and nuclear submarines. They come a little expensive, but we can squeeze our people a little more. Suppose some one from Mars invades us? .

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Raymond Hurley

Mar 07, 2012 at 10:17

Brasil has a population of almost 200 million, with a Per Capita income less than 25% of that of the UK.

There is no welfare system to speak of, and the slums of Rio are notorious.

Perhaps Wayne and Franco would care to emmigrate to this third world power house.

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wayne roberts

Mar 07, 2012 at 15:04

There are places in Britain of extreme poverty, the few rich here have a lot more money than the many poor and the gap is widening, the NHS is cost driven so if you're too expensive to keep alive and you can't afford private your days are numbered, the welfare system here is just abused by the able while those who really deserve it are pushed aside and uncatered for, the education system is also cost driven so no investment in our kids future prospects, just a series of cost-cutting measures.. the list goes on.. maybe we're not as bad as Brazil but this ain't no utopia or even a first world country..

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Raymond Hurley

Mar 07, 2012 at 21:31

Britain is a fine place to both live and work.

If the whingers and whiners would emmigrate,it would be even better.

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wayne roberts

Mar 08, 2012 at 18:11

Because there wouldn't be anyone left? It's good that people have low enough standards to think the UK is great when it is in fact a dump..

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Raymond Hurley

Mar 09, 2012 at 09:08

You are in a frightful state Wayne.

If you don't like it here,why not move ?.

If that didn't make you happier,it would probably lift the mood of the rest of us.

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wayne roberts

Mar 09, 2012 at 16:43

You don't know what state I'm in.. but I doubt my moving would be able to lift your spirits any higher.. I wish I could live in a state of ignorant bliss.. anyway who says I don't like it here? 70% of brits are happy, 70% of brits like moaning..

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