Brazil's economy will become larger than the economies of France, the UK and Germany the next 14 years, PwC predicts.
BY LBC STAFF
Brazil's economy, Latin America's largest, is set to pass the economies ofFrance this year and the United Kingdom in 2013, according to projections from PricewaterhouseCoopers based on GDP in purchasing power parity terms.
It will also overtake Germany in 2025 and Japan in 2039, PwC projects.
Meanwhile, Mexico's economy – the second-largest in Latin America – is set to pass that of Italy in 2019, France in 2028 and Germany in 2039, PwC says.
By 2050, Brazil will rank as the fourth-largest economy in the world, whileMexico will rank seventh. The same forecast predicts that China and Indiawill have the largest economies in the world, followed by the United States.
MARKET EXCHANGE
PwC also developed projections using another methodology – market exchange rates (MERs), which it points out does not correct for price differences across economies but may be more relevant for practical business purposes. "GDP at MERs is a better measure of the relative size of the economies from a business perspective," it says.
Using that methodology, Brazil and Mexico's global ascent will be slower, but still rank them among the top seven economies in 2050.
Measured by GDP at MER, Brazil will overtake the UK in 2023, France in 2027, Germany in 2032 and Japan in 2044. Meanwhile, Mexico will passItaly in 2034 and Germany in 2050.
GDP GROWTH OUTLOOK
The projections foresee an average annual GDP real growth of 4.4 percent for Brazil in the 2009-2050 period, while Mexico's economy should grow by 4.7 percent. By comparison, the traditional Big Three economies will see growth rates that are half or less of that. The United States will likely grow by 2.4 percent, Germany by 1.3 percent and Japan 1.0 percent, PwC predicts.
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