Follow us on:   

Study: Brazil fourth largest economy by 2050
February 21, 2013, 4:54 am

High inflation rates threaten the health of Brazil's exchanges  [AP]

High inflation rates threaten the health of Brazil’s stock exchanges [AP]

If Brazil is able to effectively curb its inflation rate, keep consumer confidence up, and bolster its labour sector, it could become the fourth-largest economy in the world by 2050, a recent report from PricewaterhouseCoopers (PwC) says.

Titled World in 2050 – The BRICs and Beyond: Prospects, challenges and opportunities, the report forecasts that China will become the number one economy by 2017, with India as the third largest by 2050.

The study also focused on other emerging markets predicting that oil-rich Nigeria and Vietnam could break into the top 20 economies of the world; Mexico and Indonesia into the top 10, by 2050.

The report came as new economic data revealed that Brazil’s inflation rate continued to dog the country’s efforts to push GDP growth to pre-2011 levels when it grew by 2.7 per cent.

In 2010, Brazil’s economy grew by 7.5 per cent. Analysts say the economy could grow by 3.1 per cent in 2013 and 3.65 per cent in 2014.

The country’s 12-month inflation rate rose to 6.15 per cent in January.

The central bank maintains an inflation benchmark of 4.5 per cent, with a two percentage plus or minus acceptance threshold.

Market analysts predict inflation forecasts for 2013 from 5.71 per cent to 5.70 but say that is too high and eating away at salary gains.

The Brazilian Supermarket Association, which represents 81,000 shops, is forecasting sales growth for its segment of only 3.5 per cent.

Nevertheless, Alexandre Tombini, the Central Bank President allayed fears of rampant inflation by saying the bank was unlikely to take any measures yet.

Meanwhile, unemployment levels continued to fall in possibly the best sign yet that Brazil’s economy could make a comeback.

Source: Agencies

Leave a Reply

Your email address will not be published. Required fields are marked *

Anti-Spam * Time limit is exhausted. Please reload the CAPTCHA.