Brazil becomes sixth largest economy

Brazil has overtaken Britain as the world’s sixth largest economy. It’s predicted that Brazil’s economy may grow five percent next year.

It’s much bigger in size than the UK and now it seems Brazil is also bigger economically.

The London-based center of Economics and Business Research says the South American country has taken Britain’s place as the sixth largest economy in the world.

Brazil’s GDP expanded three percent this year and next year it could grow by five percent.

Armando Castello, a Brazilian economist, believes Brazil’s rise up the ladder could assist in securing investment.

Brazilian economist Armando Castello said: “The position is more about statistics than economics. The economy itself is what really matters. But it has a psychological effect that is important, that helps with attracting investments.”

And Brazil clearly has even larger ambitions.

Brazilian Minster of Finance Guido Mantega said: “We want to be the fifth largest economy by 2015, surpassing France.”

Brazil’s success is largely due to its main exports – manufactured goods, iron ore and agricultural products, such as coffee.

Investment in oil has also helped.

In contrast Britain has experienced a banking crisis and a recession since 2008.

Brazil’s rise up the rankings is also relatively swift – it only took the seventh spot from Italy last year.

The United States, China, Japan and Germany remain the top four economies.

But Brazil is clearly in the fast lane while others head towards the hard shoulder.