By Jay Forte, Contributing Reporter
RIO DE JANEIRO, BRAZIL – It has been predicted that Brazil would surpass the United Kingdom as the sixth largest economy in the world by the end of 2011. As of today, The Guardian, Telegraph and Daily Mail all placed the South American giant as number six, behind U.S., China, Japan, Germany, and France.
The 2008 banking crisis, and the continuing global financial instability and recession are factors for the decline of the United Kingdom according to the The Guardian, which also highlights that South America has grown from exports to China and Asia.
In 2010, Brazil was the seventh largest economy in the world after overtaking Italy. The largest country in Latin America’s economy has surged because of vast reserves of natural resources and a rapidly growing, and cash-rich, middle class.
During this time the UK struggled with a national debt crisis and lack of bank credit. Citizens of the UK on average have a much higher standard of living than Brazilians still, but the latter’s 203 million population helps drive the GDP.
By 2020, Brazil should be moving up the ranking one more slot – as it passes Germany, with an economy that will be larger than any European country.
For 2012, the Brazilian Central Bank estimates growth of 3.5 percent, while the finance minister, Guido Mantega, predicts an increase between four percent and five percent.
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