Megatrends
The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.
Learn MoreIn 2011 Brazil became the sixth largest economy in the world in US$ terms. Unrelenting growth drove it past a spluttering UK struggling to recover from the 2008 global economic downturn. In the face of a global economic slowdown and a weak developed world, the emerging markets continue to prop up global growth. Though Brazil does face some risk the orientation of its economy looks likely to support the country’s long term growth prospects.
Brazil’s economy grew by 3.8% in real terms in 2011 to reach a value of US$2,581,501 million as expansionary fiscal policy and strong export markets supported growth. The UK economy has continued to suffer from the eurozone sovereign debt crisis and weak domestic demand, seeing growth of just 1.1% in real terms to a value of US$2,484,668 million;
Source: Euromonitor International from International Monetary Fund (IMF), International Financial Statistics
The success of Brazil continues to support the shift in global consumption and economic growth; from the developed economies to the developing:
Source: Euromonitor from trade sources/national statistics, International Monetary Fund (IMF), Direction of Trade Statistics
A cooling global economy in 2012, with lower growth in India, China and Russia are expected to reinforce weaker economic growth in Brazil. The IMF predicts growth to be just 3.0% and 4.0% year-on-year in Brazil for 2012 and 2013. As a response under the government’s “Bigger Brazil Plan” R$25 billion will be provided as tax breaks to support the weakest sectors of manufacturing and those most affected by Asian product dumping. While increased spending from 2012 by Brazil’s development bank for the 2014 World Cup and 2016 Olympics is set to augment among other things infrastructure development, acting as a stimulus for the economy.
In the following decade a profound shift is expected in the make-up of the top 10 global economies. By 2020 Euromonitor expects BRIC countries to surpass all but the USA, Japan and Germany to make up 4 of the 7 largest economies in the world in PPP terms, changing the balance of global economic influence. It is however important to note differences between the BRIC and developed countries will persist. For example in 2020 per capita disposable incomes in the developed economies is expected to average US$33,575, while the BRIC average will be just US$4,604 in real terms.