Brazil 'overtakes UK's economy'

[Vishwarupa]

Brazil 'overtakes UK's economy'


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Brazil has become the sixth-biggest economy in the world, the country's finance minister has said.

The Latin American nation's economy grew 2.7% last year, official figures show, more than the UK's 0.8% growth.

The National Institute of Economic and Social Research (NIESR) and other economic forecasters also said that Brazil had now overtaken the UK.

The Brazilian economy is now worth $2.5tn (£1.6tn), according to Finance Minister Guido Mantega.

But Mr Mantega was keen to play down the symbolic transition - which comes after China officially overtook Japan as the world's second-biggest economy last year.

"It is not important to be the world's sixth-biggest economy, but to be among the most dynamic economies, and with sustainable growth," he said.

Brazil is enjoying an economic boom because of high food and oil prices, which has led to rapid growth.

In 2010, the Brazilian economy was worth $2.09tn, compared with the UK's $2.25tn total output, in current US dollars, according to the International Monetary Fund.

However, according to NIESR, using the IMF's figures at current exchange rates, Brazil's economy is now $2.52tn and the UK's is $2.48tn.

The larger increase in the nominal size of both economies is explained by domestic inflation.

The Centre for Economics and Business Research has also said that Brazil's economy has overtaken the UK's.

A UK Treasury spokesman said: "Strong economic growth and large populations in the big emerging economies mean that some will catch up with advanced economies like the UK. This shows why the government is right to place high importance on its economic ties with large emerging economies."

Oil production

In the fourth quarter of last year, Brazil's economy grew by 0.3% from the previous quarter, according to Instituto Brasileiro de Geografia de Estatistica.


Will Landers, BlackRock Latin American Fund says "more and more people are investing in Brazil"
Both the annual and quarterly figures were less than analysts had predicted.

Brazilian President Dilma Rousseff has attributed the slowdown in growth last year mainly to the weak global economic situation and the need to fight rising inflation.

Brazil, the largest Latin American economy and one of the so-called Bric nations together with Russia, India and China, has seen its economy soar in recent years, with growth far outpacing the US and western Europe, but sending inflation higher.

The currency, the real, fell 11% against the US dollar last year.

That is after two years of huge gains - up 5% in 2010 and 34% in 2009. The currency is worth more than double what it was 10 years ago.

With substantial oil and gas reserves continuing to be discovered off Brazil's coast in recent years, the country is now the world's ninth largest oil producer, and the government wishes to ultimately enter the top five.

Brazil has about 190 million people, in contrast to the UK's 60 million people.

And the country has struggled with inequality. The country's Gini coefficient, a measure of income inequality, peaked at 0.61 in 1990 - but 2010's figure was a historic low of 0.53.

Absolute and relative poverty have declined in recent years, especially in the past decade, during which the poorest 50% saw their incomes go up by 68%, according to the Getulio Vargas Foundation.

The country will host the 2014 World Cup, and Rio de Janeiro will be home to the 2016 summer Olympics.

BBC News - Brazil 'overtakes UK's economy'

 

[trackwhack]

UK still has an economy?

Oh wait the debt economy ... yes, yes. Good going.

 

[weg]

In time, all the BRIC's will overtake the UK, France and probably Germany. Inevitable, really.

However, considering all things, Deutsche Bank says UK has done the best job possible in managing the crisis.

Britain is poster child for financial crisis management - Telegraph

 

[Armand2REP]

Poster Child? They have twice the inflation and half the growth of France.

 

[IBSA]

Brazilian economy is fine, but it means not so much. Among the BRIC countries our growth is the lower.

Brazil suffers with the lack of adequated infra-structure to sustain a more fast growth. Our ports, airports, power plants are operating near its limit capacities. The gov has an investment plan for infra-structure called PAC (portuguese acronym for Growth Acceleration Plan), but only 50% or lesser of available money was applied. The rest was not because of corruption, lack of public politicies, state's inneficiency.

We have lack of specialized workforce in the most advanced sectors of the economy. Brazilian people dont have much years of study, nor even like to study.

Overall, though of gov and midia commemorate the fact we be the 6th largest economy, our wealth distribution is one of worst of the world. Social and regional inequalities are huge yet, and the major part of this boom finishes in the hands of a few elites. If only economy has importance, Canada would be a superpower also.

While, Brazil dont correct its weakness, we will never be a global superpower, only a good market and nothing more.

 

[panduranghari]

In time, all the BRIC's will overtake the UK, France and probably Germany. Inevitable, really.

However, considering all things, Deutsche Bank says UK has done the best job possible in managing the crisis.

Britain is poster child for financial crisis management - Telegraph

Thats another article by shills from the City of London.

George Monbiot – Wealth Destroyers

It's the dark heart of Britain, the place where democracy goes to die, immensely powerful, equally unaccountable. But I doubt that one in ten British people has any idea of what the Corporation of the City of London is and how it works. This, at last, could be about to change. Alongside the Church of England, the Corporation is seeking to evict the protesters camped outside St Paul's cathedral. The protesters, in turn, have demanded that it submit to national oversight and control(1).

What is this thing? Ostensibly it's the equivalent of a local council, responsible for a small area of London known as the Square Mile. But, as its website boasts, "among local authorities the City of London is unique"(2). You bet it is. There are 25 electoral wards in the Square Mile. In four of them, the 9,000 people who live within its boundaries are permitted to vote. In the remaining 21, the votes are controlled by corporations, mostly banks and other financial companies. The bigger the business, the bigger the vote: a company with ten workers gets two votes, the biggest employers, 79(3). It's not the workers who decide how the votes are cast, but the bosses, who "appoint" the voters(4). Plutocracy, pure and simple.

There are four layers of elected representatives in the Corporation: common councilmen, aldermen, sheriffs and the Lord Mayor. To qualify for any of these offices, you must be a freeman of the City of London(5,6). To become a freeman you must be approved by the aldermen(7). You're most likely to qualify if you belong to one of the City livery companies: mediaevel guilds such as the worshipful company of costermongers, cutpurses and safecrackers. To become a sheriff, you must be elected from among the aldermen by the Livery(8). How do you join a livery company? Don't even ask.

To become Lord Mayor you must first have served as an alderman and sheriff and "must command the support of, and have the endorsement of, the Court of Aldermen and the Livery"(9). You should also be stinking rich, as the Lord Mayor is expected to make a "contribution from his/her private resources towards the costs of the mayoral year."(10) This is, in other words, an official old boy's network. Think of all that Tory huffing and puffing about democratic failings within the trade unions. Then think of their resounding silence about democracy in the City of London.

The current Lord Mayor, Michael Bear, came to prominence within the City as chief executive of the Spitalfields development group(11), which oversaw a controversial business venture in which the Corporation had a major stake, even though the project lies outside the boundaries of its authority. This illustrates another of the Corporation's unique features. It possesses a vast pool of cash, which it can spend as it wishes, without democratic oversight. As well as expanding its enormous property portfolio, it uses this money to lobby on behalf of the banks.

The Lord Mayor's role, the Corporation's website tells us, is to "open doors at the highest levels" for business, in the course of which he "expounds the values of liberalisation"(12). Liberalisation is what bankers call deregulation: the process that caused the financial crash. The Corporation boasts that it "handle issues in Parliament of specific interest to the City", such as banking reform and financial services regulation(13). It also conducts "extensive partnership work with think tanks "¦ vigorously promoting the views and needs of financial services."(14) But this isn't the half of it.

As Nicholas Shaxson explains in his fascinating book Treasure Islands, the Corporation exists outside many of the laws and democratic controls which govern the rest of the United Kingdom(15). The City of London is the only part of Britain over which parliament has no authority. In one respect at least the Corporation acts as the superior body: it imposes on the House of Commons a figure called the remembrancer: an official lobbyist who sits behind the Speaker's chair and ensures that, whatever our elected representatives might think, the City's rights and privileges are protected. The mayor of London's mandate also stops at the boundaries of the Square Mile. There are, as if in a novel by China Miéville, two cities, one of which must unsee the other.

Several governments have tried to democratise the City of London but all, threatened by its financial might, have failed. As Clement Attlee lamented, "over and over again we have seen that there is in this country another power than that which has its seat at Westminster."(16) The City has exploited this remarkable position to establish itself as a kind of offshore state, a secrecy jurisdiction which controls the network of tax havens housed in the UK's Crown dependencies and overseas territories. This autonomous state within our borders is in a position to launder the ill-gotten cash of oligarchs, kleptocrats, gangsters and drug barons. As the French investigating magistrate Eva Joly remarked, it "has never transmitted even the smallest piece of usable evidence to a foreign magistrate"(17). It deprives the United Kingdom and many other nations of their rightful tax receipts.

By undermining the standards set elsewhere, it has also made the effective regulation of global finance almost impossible. Shaxson shows how the absence of proper regulation in London allowed US banks to evade the rules set by their own government. AIG's wild trading might have taken place in the US, but the unit responsible was regulated in the City. Lehman Brothers couldn't get legal approval for its off-balance sheet transactions in Wall Street, so it used a London law firm instead(18). No wonder priests are resigning over the plan to evict the campers. The Church of England is not just working with Mammon; it's colluding with Babylon.

If you've ever dithered over the question of whether the UK needs a written constitution, dither no longer. Imagine the clauses required to preserve the status of the Corporation. "The City of London will remain outside the authority of Parliament. Domestic and foreign banks will be permitted to vote as if they were human beings, and their votes will outnumber those cast by real people. Its elected officials will be chosen from among people deemed acceptable by a group of mediaevel guilds "¦ ".

The Corporation's privileges could not withstand such public scrutiny. This, perhaps, is one of the reasons why a written constitution in the United Kingdom remains a distant dream. Its power also helps to explain why regulation of the banks is scarcely better than it was before the crash, why there are no effective curbs on executive pay and bonuses and why successive governments fail to act against the UK's dependent tax havens.

But now at last we begin to see it. It happens that the Lord Mayor's Show, in which the Corporation flaunts its ancient wealth and power, takes place on November 12th(19). If ever there were a pageant crying out for peaceful protest and dissent, here it is. Expect fireworks – and not just those laid on by the Lord Mayor(20).

 

[W.G.Ewald]

Remember, Obama gave Brazil $2 billion to drill for offshore oil.

 

[amitkriit]

And where does India stand? At the bottom of the ladder I guess. Brazil with a population less than our state of UP has a bigger GDP than whole India combined. Plus don't forget that UK is just a small country with a population of around 62 million.

It will take several decades for the BRIC nations to achieve the same living standard like the people enjoy there in UK.

 

[Dovah]

And where does India stand? At the bottom of the ladder I guess. Brazil with a population less than our state of UP has a bigger GDP than whole India combined. Plus don't forget that UK is just a small country with a population of around 62 million.

It will take several decades for the BRIC nations to achieve the same living standard like the people enjoy there in UK.

Brazil is a resource rich nation, their growth rate is like 3%. However, I'm glad to see Brazil progressing.