Brazil’s rapidly-expanding society and economy has been prompting optimistic forecasts for some time. Most recently, it’s interesting to note the remarks of Guido Mantega, the country’s Finance Minister, speaking yesterday.
A number of institutions, including the prestigious UK newspapers 'Daily Telegraph' and 'The Guardian' have confirmed something about Brazil long expected in both countries. It is now official that Brazil has overtaken the United Kingdom as the world's 6th largest economy in terms of GDP. This is also agreed by a study from Centre of Economic and Business Research, an analysis pointed to by Mr. Mantega. In addition, a further climb up the ladder is expected by 2020 when it's expected that Brazil will increase its ranking to fifth place, this time overtaking Germany ( and by definition surpassing any other country in Europe).
The consequences for those wishing to invest in Brazil are interesting, to say the least. Of especial note is international property investment, especially that intending to meet the booming demand for affordable homes for the burgeoning middle classes. Mantega went on to remind people, though, that a national GDP doesn't necessarily imply anything for the 'per person' measure of social and economic progress. After all, Brazil has nearly 200 million people, more than three times that of the UK (and over twice that of the Federal Republic of Germany), so the average Briton still has a higher lifestyle than his or her counterpart in the leading BRIC country. Nonetheless, and even by this person-to-person comparison measure, Guido Montega predicts a rapidly-closing gap between the two and forecasts parity (or more) within 'five to ten years'.
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