Created on Wednesday, 30 November 2011 13:44
Written by Glenn Szlagowski - Financial Adviser
Brazil - an emerging market no more
According to a November 23 article from Marketwatch.com;
"Over the past few years Brazil has seen itself catapulted onto the world stage thanks to its booming economy and dynamic growth trajectory. With a GDP predicted to total $2.4 trillion for 2011, the Latin American giant looks set to overtake the U.K. to become the world’s sixth largest economy by the end of the year."
Yes you read it right. [Brazil] looks set to overtake the U.K. to become the world’s sixth largest economy by the end of the year.
Canada by comparison, is a distant 9th spot according to Forbes magazine.
In the 1990's Brazil was a military dictatorship and inflation was out of control exceeding 2,700%. Europe and North America have always looked at South America as a kind of sleepy underdeveloped country.
A democratically elected government, a new currency, stable inflation and open markets have dramatically transformed the country.
Adding greatly to its good fortune is the recent massive oil discovery. According to the marketwatch article;
"50 billion barrels of oil have been identified so far, making this the biggest oil find in the country’s history. It has the potential to launch Brazil into the ranks of the world’s top five oil producers."
Brazil will indeed be on the world's stage very soon as it will host not only the 2014 World Cup, but also the 2016 Olympics as well.