RIO DE JANEIRO, BRAZIL – The Brazilian GDP dropped 4.1% in 2020, registering the largest contraction since the start of the IBGE’s current official records in 1996. According to a survey by Austin Rating, the country may slip to the 14th position in 2021.
With the historic 4.1% drop in GDP (Gross Domestic Product) in 2020, Brazil has left the ranking of the world’s 10 largest economies and dropped to 12th place, according to a survey by Austin Rating agency. In 2019, Brazil ranked 9th. Because the ranking is always in U.S. dollars, and Brazil’s real has depreciated against the dollare more than most countries, some of the decline can be attributyed to the weak currency.
According to the ranking, Brazil was overtaken in 2020 by Canada, Korea and Russia.
However, not all countries have released the official or final GDP data for 2020. The final ranking of the world’s largest economies should be released in April, after the International Monetary Fund (IMF) publishes its consolidated results.
“There is a chance that Russia will have a very poor figure and will drop considerably, and then Brazil will go back to 11th, I think that’s the maximum. Australia is unlikely to overtake Brazil because the difference is too big”, says Alex Agostini, chief economist at Austin Rating.
The survey also shows that Brazil’s GDP decline in 2020 ranked 21st in a comparison between the 50 largest economies in the world. The largest drops were posted by Peru (-11.1%), Spain (-11%) and the UK (-9.9%). Only 3 countries on the list posted growth compared to 2019: Taiwan (3.1%), China (2%) and Turkey (1.6%).
Austin estimates a 3.3% rise in Brazil’s GDP in 2021, below the expected global growth average (5.5%). Should these projections be confirmed, the country may drop to the 14th position in the ranking of the world’s largest economies, being overtaken also by Australia and Spain.
Between 2010 and 2014, Brazil remained in 7th position. At its worst moment, in 2003, it was in 14th position. Austin Rating’s ranking has been comparing the world’s largest economies since 1994.
Source: G1