Despite Low GDP Brazil’s Economy Jumps from 15 to 11th Place in the World

    Brazil became the leading Latinamerican economy in 2005, ahead of Mexico, and ranked eleventh in the world according to data released Thursday by the IBGE, Brazil’s Geography and Statistics Institute.

    Brazil’s GDP grew only 2.3% in 2005 reaching 795.77 billion US dollars based on the average exchange rate.

    However the GDP figure was significantly affected by appreciation of the local currency, the real, against the US dollar, something analysts said weighed even more heavily than actual expansion of production of goods and services.

    Actually the expansion of the South American nation’s GDP was helped not so much by real growth, which barely totaled 2.3% but by the 12.4% fall in the value of the dollar against the real in 2005, argued economist Alex Agostini from Austin Rating.

    Last year’s Brazil’ 2.3% growth was the lowest of Latinamerica only ahead of Haiti.

    Brazil’s GDP growth allowed it to move from position 15 (2004) to 11 (2005) among the world’s largest economies, according to International Monetary Fund figures.

    Last year Brazil’s economy trailed only those of the United States, Japan, Germany, Britain, France, China, Italy, Spain, Canada and South Korea.

    In comparison to 2004, Brazil’s economy ranked above those of India, Australia, the Netherlands and Mexico which ranked 13 with 758.1 billion US dollars. Russia occupied position 12 with 772.2 billion US dollars.

    Last year, Brazil accounted for about one-third of Latin America’s GDP and not only surpassed Mexico in economic output, but it also expanded its lead over Argentina, which had a GDP of 177.3 billion; Venezuela, 131 billion; Colombia, 112.3 billion; and Peru with 77.2 billion.

    Until 1998, Brazil had the eighth-largest economy in the world and the largest in Latin America, but it lost the regional lead in 2001.

    However in per capita income Brazil ranked 72 in the world with 4.333 US dollars, behind Argentina (71); Panama (70) and Costa Rica (69).

    Mercopress – www.mercopress.com

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    • Show Comments (17)

    • superman

      lol
      guys. im doing a project on brazil and this argument is pretty f***ing retarted. brazil is as of right now on the HDI ratings 69/177 countries in the world. for those of u who are to stupid to read that the lower is better then higher

    • Alex Hart-Smith

      New Zealand our main exports are Meat and Dairy products and we are definetly a developed nation. And last time I checked Dariy and Meat products are quite cheap.

    • Marco

      hehehe
      IÀ‚´m brazilian and… Do you know what I think about that discussion?! This sucks.. hahah MR Smart is a Mr Fool… DonÀ‚´t make me feel shame from you…
      brazilian is still development itself… but that development is taking a long time.. now for a reason: Lula.

    • Guest

      an outsider\’s comment
      … man.. such a fun argument u guys are having here..

      although I don’t know that much about how Brazil’s economy’s working out right now..

      I know this..

      Mr. Smart.. ^_^ u’re a jack ass..
      learn some manners and maybe ppl will take ur words into more consideration next time..

    • Guest

      to my favorite MR. IDIOT (PINOCCHIO)
      Let’s go directly to your lesson of the day IDIOT!!
      Lie # or lesson 1:
      Your IDIOT if the brazilian currency was allowed to depreciate agist the dollar than “by definition” It’s GPD would had increased due to more exports…so your bull shit it’s just that “bull shit”.
      Lie #2:
      “It remains that Brazil had the lowest 2005 growth of ALL latin and carabean countries, after Haiti.” THAT IS WHAT YOU SAID!!! RIGHT???
      REAL GDP GROWTH FOR 2005:
      BRAZIL——–5.2%
      PERU———-4.5%
      BOLIVIA——-3.7%
      COLOMBIA—-3.6%
      BELIZE——–3.5%
      PARAGUAY—2.8%
      JAMAICA——1.9%
      DOMINICAN REP.-1.7%
      JAMAICA—— 1.9%
      GUYANA——- 1.9%
      CAYMAN ISLAND-1.7%
      MR IDIOT–100% BLIBLE WORSHIPER IGNORANT HIGH SCHOOL DROP OUT, RACIST, INCOMPETENT, SCUM OF THE EARTH LIER!!!!

      Lie #3:
      “of around 185 millions has a total GDP less than half of the GDP of the UK despite UK is not even a third of Brazil population” THAT IS WHAT YOU SAID!!! RIGHT???
      2005 GDP FOR:
      UK GDP———1.78
      BRAZIL GDP— 1.492
      MR. IDIOT, I know you are not good in math either…but that puts UK GDP at about 16% higher than Brazil’s GDP and furthermore, your reference to population of both countries makes no sence since you were talking about gross GDP and not per capita…YOUR IDIOT!!!

      Lie#4:
      “Embraer had a total 2005 revenues of around $ 4 billion, quite small for the aerospace industrie” THAT IS WHAT YOU SAID !!! RIGHT???
      WITHOUT COUNTING WITH THE RECORD SALES OF THE RESEARCH DEVELOPMENTS OF THE NEW SUPER LIGHT METAL VL AND SVL PLANES FOR THE COMING YEAR, EBRAER SURPASSED THE CANADIAN BOMBARDIER IN ALL SALES AND BOEING IN THE 170 PASSANGERS CLASS, TOGETHER!!!

      LIE or Lesson #5:
      The ethanol program has been around in Brazil for along time MR. IDIOT… The USA has just decided to learn the technology that Brazil have for quite few years now…

      Lie or Lesson #6:
      There are 3 Silicone valley areas in Brazil MR.IDIOT, one in Minas Gerais, one in Pernambuco and one in Sao Paulo… why don’t you do some reading about that first so you can talk to me on another time…do me a favor IDIOT…slow down your reading so you understand what is going on… You got one thing correct in all this bull shit of your…YES I’M SMART MUCH MUCH SMARTER THAN YOU WILL EVER BE!!! BUT HEY….EVERYTHING IS RELATIVE AND YOU MAKE IT SOOOO EASY!!!! KISSES…
      YOUR MR. SMART

    • Guest

      Mr SMART NEVER ANSWER A QUESTION….
      PLEASE NAME A DEVELOPING COUNTRY THAT YOU BEATED IN A 3 YEAR TIME FRAME FOR ECONOMIC GROWTH !
      PLEASE DO….MR SMART !

      AS TO BRAZILIAN INTERESTS RATES PLEASE READ EVERY PRESENT AND RECENT ARTICLES TOGETHER WITH THE ONES THAT ARE PUBLISHED WEEKLY ON THE SITE :
      http://www.brazilnews.com

      Every week it gives you all the economic numbers and financial performances provided by THE BRAZILIAN GOVERNMENT AND BRAZILIAN AGENCIES SUCH AS IBGE,CB, BNDES AND OTHERS.

      YOU CAN ALSO READ ARTICLES IN THIS SAME SITE ON A DAILY BASIS.

      ANYWAY ! LULA IS PROUD THAT YOU SWALLOWED AND CONTINUES TO SWALLOW ALL HIS LIES.
      THAT IS EXACTLY WHAT HE WANTED.
      TO BRAINWASH YOU SO YOU DONT SEE THE SAD REALITY.
      NOTHING ELSE !
      BUT IT IS NOT BY BEING BLIND OR BY PUTTING YOUR FINGERS ON YOUR EARS AND EYES THAT YOU WILL REALIZE THE SAD REALITY.

      JUST CONTINUE TO VOTE FOR HIM, GET A JOB FROM THE GOVERNMENT, BE LAZY AND AS CORRUPTED AS
      LULA THE JUNKIE !!!

      YOU CAN BE SURE THAT NOTHING WILL EVER CHANGE FOR THE BETTER.

      ON A FINAL NOTE, DID YOU SEE THAT MOST GRAIN FARMERS AND CATTLE FARMERS ARE ACTUALLY LOOSING MONEY ?
      THAT THEY ARE REQUESTING, FOR A THIRD TIME IN A DECADE, GOVERNMENT HELP, DELAY AND EVEN CANCELLATION OF CAPITAL AND INTERESTS REPAYMENT ?
      DID YOU SEE THAT FARM LAND PRICES ALREADY COLLAPSED BY AROUND 50 % SINCE THE TOP OF 2004 AND THAT IN VIEW OF THE ACTUAL AGRICULTURE PRICES, FARM LAND PRICES WILL CONTINUE TO COLLAPSE.
      DID YOU SEE THAT MANY SOY FARMERS, CATTLE FARMERS IN THE SAO PAULO REGION ARE SWITCHING THEIR PRODUCTION TO SUGAR……BECAUSE THEY ARE LOOSING SO MUCH MONEY ON GRAINS AND CATTLES PRODUCTION ???????

      NO DOUBT THAT THEY WILL AGAIN LOOSE MONEY WITH YOUR ETHANOL PRODUCTION.
      THEY JUST INVEST IN FASHIONABLE WAY, BUT WHEN FASHIONS CHANGES, BIGGGGG LOSSES ARE INCURRED FIRST SUCH AS NOW WITH GRAINS AND CATTLES.

      EXPORTING IS GOOD….WHEN THERE IS A PROFIT.
      EXPORTING AT A LOSS, DOESNT MAKE ECONOMIC SENSE.

      DURING THE LAST 3 YEARS IT WAS NOT AN ECONOMIC MIRACLE BUT AN ECONOMIC MIRAGE…ONLY !

      YOU GREW by 0.5 % IN 2003, 4.9 % in 2004, and 2.3 % in 2005, WHILE ALL OTHERS DEVELOPED NATIONS GREW BY AT LEAST TWICE YOUR NUMBERS.

      BRAZIL SOCIETY IS WONDERFUL BUT MANAGED BY CROOKS WHO JUST DO THINGS TO PROTECT AND GROW THEIR OWN WEALTH, BUT NEVER FOR THE BENEFIT OF THE WHOLE SOCIETY !!!

      LOOSERS YOU ARE, LOOSERS YOU WILL REMAIN IN THE ECONOMIC FRONT, BUT YOU MAY EVENTUALLY WIN THE WORLD SOCCER CUP.

    • Guest

      Mr.IDIOT !!!!
      WHERE IN THE WORLD DO YOU GET THIS NUMBERS??? DON’T YOU REALIZE THAT PEOPLE ARE GOING TO GET YOU ON MORE LIES AND BULL SHIT??? MY GOD YOU ARE A CHRONIC LIER THAT DON’T MIND A BIT BEING CATCH ON LIEING EVERY TIME YOU SPEAK!!!! WHAT IS THIS??? THIS IS UNBELIEVABLE!!! YOU ARE A SICK INDIVIDUAL GUY!!!
      HERE IS A VISUAL FOR YOU… ENJOY IT “MY BALLS ON YOUR MOTHER CHIN”

    • Guest

      Mr SMART…..
      …on your exports, here is my simple analysis.

      No country in this world became developed when it counted only on external demands.

      And whatever way you look at it, Brazil cannot have HEALTHY internal demand when corporations have to borrow money at 30 to 50 %, consumers at between 60 to 80 % and overdrafts at around 150 %.
      And these rates did not come down despite your official rates did.
      And the rates above are not during the time you had high inflation but they are actual rates with inflation of around 5 to 6 %.
      Consumers just end up paying TWICE THE COST.
      As long as you allow your banking system to rape and rob you so harshly, just forget to have healthy internal demand.
      Because in the direction you go, namely lower inflation and lower OFFICIAL interests rates (still the highest in the world, despite the reductions) it wont really help your economy if your banks remain allowed
      to charge a spread of such magnitude.
      Because if they do so, even a 3 % inflation and a 10 % Official rates, they would still charge your corporations with rates of 25 to 45 %, consumers at between 55 to 75 % and overdrafts at around 145 %, assuming your Official rates go down to 10 % in a year or two.
      The most positive expectaytions for the time being is 13 % in 1 year.

      Finally it is quite curious that Brazil is so much against the agriculture subsidizes of the developed nations, knowing that Brazil subsidizes EVERY export industry via tax cuts or tax exemptions or via the BNDES with very low rates subsidized by the government.
      Your TJLP rate just went down to 8.15 % yesterday.
      So why would non exporters or non subsidized corporations or consumers have to borrow at anything up to 80 or even 150 % ??????

    • Guest

      Whicever you look at it, MR SMART….
      …it is not China or whoever country that decides themselves to figure out with PPP or not with PPP ! It is just a different way to analyze numbers to compare apples with apples. And numbers come out from neutral agencies, not from the countries themselves. You can guess why, numbers being so easily manipulated !

      Nonetheless, whichever way you calculate, a PPP of $ 29600 for the UK and compare it to 8100 for Brazil, you still have only a small fraction of it.
      Now if you compare the PPP between Brazil to China, you are right. But I never said that Chinese have a better living standard than Brazilians.
      However, just look at how China GAINED strength during the last decade and look at how Brazil LOST strength during the same period. But feel free to use another time frame, such as 1,3, 5 years and there is no difference.
      You can do the same between Brazil and India, South Korea, Thailand, Chile or whoever your choice is, provided it remains a developing country, to compare apples with apples, and not apples with peaches.
      You are also free to use the time frame of your choice, 1,3, 5, 10, 20 or even 50 years.
      MR SMART, please come up with the results of your analysis.
      Dont forget to take in account that your ranking of 88 is first not that good either, and that you include ALL the countries of the world, including the LDC’s countries.
      By the way, are you aware that with a PPP
      of $ 8100.- per capita, Brazil has the highest percentage of poverty of ALL comparable countries ????
      And that is why you have one of the highest wealth inequality in the world.

      Are you so proud of such a situation ?

    • Guest

      TO MR IDIOT
      Once again Mr. IDIOT, you have distorted the thruth, speaking with absolutely no qualification at all. Everything you say, is from a little article you read somewhere…the problem is that you misunderstand 95% of what you read!!!
      Your Problem:
      China calculates GDP usin (PPP) Purchasing Power Parity, which by definition puts China at 5,642 GDP per capita, ranking China 92 in the world.
      China (HDI) Human Development Index ranked 85 with HDI of .55 in 2004.(This is very importance factors today’s economics and Trading Nations ok Mr. IDIOT?.)
      Now if you are to use GDP per capita using (PPP), the UK GDP per capita would be $29,600 Mr. IDIOT and that is quite different from what you said, isn’t it?
      Now pay attention!!! Here comes the part that you will hate the most…
      Brazil’s GDP per capita (PPP) is $8,100 raking 88 in the world.
      Brazil’s (HDI) Human Development Index rank 65 with .0792 in 2004.
      So you see Mr. IDIOT, BRAZIL IS NOT AS BAD AS YOU THINK.
      It’s not about Lula or politics…it’s about a continental sized country with enormous potential, maturing together and coming to the realization that we will never be the country that we want to be, until the last countryman from the winds and breaths of poverty… There’s no short term solution to the millions left behind…but I can garantee you, WE WILL SUCCEED !!!
      Ps I suggest that you do some reading on brazil’s exports Mr. IDIOT!!!

    • Guest

      Brazil doesnt export…
      that many planes, electronics and automobiles.

      Embraer had total 2005 revenues of around US$ 4 billions.
      Quite small in the aerospace industry.
      Sorry !

      You dont produce electronics as you say but just have a few assembly lines.
      You dont produce chips but import them.
      Mixing up simple assembly lines with electronics production just demonstrate how far you are developed.
      That is NOT the same, wether you like it or not ! Assembly lines dont need high technology.
      Sorry too !

    • Guest

      And Brazil with a population….
      …of around 185 millions has a total GDP less than Half of the GDP of the UK, despite UK is not even a third of Brazil population.

      Simple demonstration that your arguments of size in population and total GDP does not make sense.

      Unfortunate for you !

    • Guest

      India and China, despite….
      …their huge population are NOT off the charts as you say.
      In 2005 China with around 1.4 billion population just passed the GDP of England, a country 25 times smaller or more in population, than China.

      So what you say is Dead Wrong !
      Please review your copy !

    • Guest

      Re-read articles here and there !!!!

      If developing countries like Brazil dont grow more than developed countries, how will they reduce the gap ?
      Impossible by definition !
      It remains that Brazil had the lowest 2005 growth of all Latin and Caribean countries, after HaÀ¯ti.
      This ranking is not from me-

      No country in this world has ever become a developed nation only by exporting basic commodities or low value added products.
      You only have a few small oil producing countries that became wealthy although still not considered developed nations.
      If you know 1, please name it. Simple.
      Also no country on this planet ever became developed by having loans made to consumer at anything between 60 to 80 % per year and even as high as 150 % for overdrafts
      If you know 1, please name it. Simple.

      As to the USA, you should thank them to accept such a high trade deficit.
      Otherwise to whom will you sell your goods….by definition ?
      To China ? Nooo because then China would also sell much less to the USA. To India ? Nooo….because you trade with this country is very small.

      Concerning the future of Brazil, sorry, but many many times in the past, at every commodties boom you said : this time is different.
      But it was not different. So why anyone should believe it is different this time ?
      Are you not called a BOOM AND BUST ECONOMY ?
      Therefore after the BOOM (which you even missed this time) a normal BUST will follow in the not too distant future.
      I understand that you dont like to face the reality, but reality is not made with words and promises as Lula does, but with facts and numbers and rankings made by objective sources.
      Please just read the article published yesterday on this same site in Brazzil Magazine part.
      It is self explanatory.
      Brazil is lagging ALL developing countries.
      Simple.

      Sad but true, if you read many many articles, wether from Brazilian or Foreign sources !

      Cheers to all of you who dont like to face your sad and shameful reality !!!!
      .

    • Guest

      Explanation to MR Idiot
      I would say that some people are frightened with Brazil’s current position. I mean it is no secret to anyone that we are a poor nation. So this last poster is looking increasingly stupider than he already is by repeating the same arguments under every article in this site.

      I will tell what he is afraid of: He is afraid that Brazil for once and for all will become a rich country. It is a fact that Brazil has never been as stable as now. This is a requirement to grow. Look at the rich countries, their growth is not that high too. (a growth of 2-4 % per year),

      So the first step for Brazil’s success is stability! The second required for success is called industrialization. Brazil is also acting well in this area, i.e., ‘We’ manufacture and export many planes, automobiles, electronics, etc, etc, etc.

      Industrialization requires also education. Brazil has been investing relatively a great sum of money since 2001 by “sponsoring” the children’s parents to send them to school. The number of universities has also been growing fast for the last 10 years. Even the poor are now going to universities. (Though in relatively very small quantities)

      And I would say that a third step to success can be named: a new product. Brazil has been investing in this new product called BIOFUEL. We will require some time to develop and make it sustainable, but when that is done, the world will lie on our feet. Thanks to the new regulations made in the rich western countries, they will require 5% of biofuel added in their diesel as from +/-2008. Guess who will be their main supplier!!!!!

      Besides that, we are already exporting a considerable amount of Ethanol to the U.S.A. (Yes, to your country you STUPID guy). Production of Ethanol is still growing at a very fast pace! Japan is also willing to buy this product!!

      And last but not least: Brazil is becoming auto-sufficient in oil in a sustainable way coming April 2006 with its new platform P-50. Brazil has already bought a 50% stake of an American refinery, so they will be able to export the oil of platform P-50 to the USA.

      So stupid American where are you with your stupid arguments????

      I would say that you should concern more with your mighty country named the USA!!! Do you know why I am saying this???? You are stupider than a mule, so you won’t know! So I will explain now to you why you should start worrying about your Country.

      To start with: The United States has posted a trade deficit since the 1970s, and it has been rapidly increasing since 1997. The 2005 deficit in goods and services (US$725.8 billion) set a new record. see: http://en.wikipedia.org/wiki/Trade_deficit#The_United_States_trade_deficit
      Not to mention about American’s $44 trilion total debt and still soaring!!!!! http://mwhodges.home.att.net/nat-debt/debt-nat.htm This Situation won’t change as you are importing 56% of your fuel
      You know what this means. China, Europe and the Arabs (yes, your enemy) is buying your companies with your Dollars!!!
      Brazil will follow their example. Brazil will sell their Biofuel and Ethanol to the USA. After a few years we will have enough money to buy Intel and Microsoft. We will subsequently export computers to the USA with windows XP.
      You understand now HOW AND WHY YOUR SUPREMACY is coming to an end!!!????
      So for the next time kiddie, look to your own ass before spouting such moronic bullshit, you shithead!!!!!!!!

    • Guest

      AND THAT IS WHAT THE ARTICLE IS REFERING
      YOU STUPID IDIOT!!! THAT IS HOW GDP IS MESSURED OTHERWISE INDIA AND CHINA WOULD BE OFF THE SCALE AND COUTRIES LIKE AUSTRALIA WOULD BE WAY UP FRONT… GET IT??? IT’S NOT HARD!!! YOU HAVE ABSOLUTELY NO CLUE WHEM IT COMES TO ECONOMY … SO MR. IGNORAMUS YOU NEED TO GET A JOB OR FINISH YOUR THIRD GRADE …THE ARTICLE IS BSOLUTELY CORRECT!!! YOU ARE FULL OF SHIT!!! BUT YOU KNOW WHAT?
      IT IS A MATTER OF TIME NOW BUDDY…WE ARE ON TO YOU.
      I’M PROUD TO BE A BRAZILIAN!!!! VERY PROUD!!!

    • Guest

      You are the 11th…in size…
      just because you have a large population, probably the the 5th or 6th largest.
      But as the article says you ranked 72 when true GDP per capita is taken in account.
      That rank would also had been worse if your currency appreciation was not taken in account !

      Conclusion : NOTHING TO BE PROUD OF.
      For a developing country you still have one of the largest percentage of poverty, you still have the lowest growth rate wether in 1 or 3 years time frame, and you still have the the worst wealth inequality.
      I dont even take in account your rank, when it comes to corruption, impunity, injustice, social inclusion, interests rates after inflation, violence, crimes just to name a few more because more there is !

      Therefore you excel only in what is BAD and never in what is positive.

      Nothing to be proud of.

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