In an ongoing battle of the economies around the world, it is projected that the UK will lose its status as the sixth largest global economy later this year to Brazil. The newest figures released by the Economist Intelligence Unit are based on GDP predictions.
According to the EIU, Brazil will have a GDP of $2.44 (USD) trillion whilst the UK will be just behind them with $2.43 trillion. Still the world’s leading economy, global measurements are based on the United States Dollar. Last year Brazil came into seventh place, bypassing Italy and this year it is projected that they will move up one more place supplanting the UK for sixth place.
Brazil’s upward climb is largely based on growth in their consumer class along with thriving trade with China that has a need for such commodities as iron ore and corn. Although the rising need for commodities in China are bringing Brazil quickly up the ladder of global economies, it is forecast that this will slow down at some point in the not so distant future.
Even so, all forecasts indicate that by the year 2020 Brazil will move into 5th place, overtaking Germany and by that time it is predicted that China will have supplanted the United States as the world’s leading economy. At that point, it is suggested that China will be in first place with the US right behind them in second place. After that, economists say that third and fourth places will be filled by India and Japan respectively.
If all these predictions come to pass, the UK will be in 9th place with France (8th), Russia (7th) and Germany (6th). Brazil is growing at a rate of 7.5% a year and their growth rate is expected to maintain momentum since they are one of the economies that have weathered the most recent debt crises.
