A recent IMF report predicts that Brazil could become the ninth-largest global economy by 2023 and the second-largest in the Americas.
Earlier, they had ranked it at tenth. The new report shows Brazil’s GDP could reach $2.126 trillion. This would be higher than both Canada and Russia.
According to the new data, Brazil is showing fast growth. The Brazilian Real, its currency, has also gained value.
Alex Agostini, a chief economist, says the Real has risen 2.17% this year. In contrast, the Russian Ruble fell by 12.9%.
The IMF also finds Brazil’s economic growth better than expected. They say the growth is strong, especially in services. The first half of 2023 shows promising results.
Looking ahead, Brazil might rise even higher. The IMF predicts it could become the eighth-largest economy by 2026.
Then, its GDP might surpass Italy’s and reach $2.476 trillion. This could continue until 2028 or longer. Brazil was the world’s seventh-largest economy from 2010 to 2014.
Background
Brazil has a history of economic ups and downs. In the past, it has faced challenges like inflation and political instability.
Yet, it has also shown resilience. From 2010 to 2014, Brazil was the seventh-largest economy in the world. It was a period of strong growth, fueled by high commodity prices.
However, things changed. Brazil entered a recession in 2015 that lasted until 2017. Now, the latest IMF projections indicate a strong comeback.
This suggests Brazil’s economy is recovering and could soon reclaim a spot in the global top 10.