Brazil Economy Set to Overtake the UK

Earlier this year several significant predictors forecast that Brazil’s rapidly-expanding economy may well exceed that of Britain by the year-end. According to this view it would push the latter’s ranking down to only seventh-place in the global league. Although the year has not (quite) ended it does look as if the neck-and-neck situation will actually occur, with both nations still in hot competition to get the final edge.


IMF reports and those of other organisations (such as the Economist) have seemed to concur. Naturally enough the news was greeted with great enthusiasm all across the Brazilian economy. Additionally the tidings were seen, too, as confirming a growing trend that the BRIC nation was heading to challenge in a serious way many ‘first world’ economies’ positions in the near future, not just that of the UK. All this is of great interest to those wishing to invest in Brazil.

While genuinely welcome and (probable), the predictions have to be seen in their proper contexts. First of all, the headline terms widely used in this area (‘overtake’, ‘surpass’ etc.) refer to the countries’ comparative total national GDP’s (both expected to be around the $2.4 trillion level) and crucially not GDP per actual person.

This means that the United Kingdom with a population of 62 million still has a much higher GDP per citizen than Brazil with her 190 million. But, there’s no doubt the latter is improving its relevant position on that measure too. Because of this fact, overseas property investment for example, for British capital, is growing in Brazil and nowhere more so than in construction.

This involves a broad spectrum of short term investments and longer ones too. These include the construction of the Olympic and FIFA championship infrastructure but increasingly focusing on the affordable housing market, linked as it is to the immensely popular ‘Minha Casa Minha Vida’ scheme for people on relatively modest means.

article source : ecohousedevelopments.com