Brazil May Rise or Fall in the Ranking of the Largest world Economies

Without an exchange rate effect, the country would return to 8th position; real weak takes country out of the 'top 10'

Manaus and São Paulo

The Brazilian economy will likely fall from the 9th to 12th world position in 2020. This is due to the contraction of the GDP (Gross Domestic Product) and the loss of value of the real against the dollar, according to calculations by researchers Marcel Balassiano and Claudio Considera, from FGV Ibre (Brazilian Institute of Economics of Fundação Getulio Vargas).

"This change in Brazil's position, going from the ninth-largest economy in the world in 2019 to the twelfth in 2020, is mainly explained by the exchange rate variation", say the economists, considering that the devaluation of the real in the year will be just above 30%.

Balassiano and Considera also calculated the size of world economies based on the PPP
(purchasing power parity), which reflects the differences in the cost of living between countries. In this case, Brazil will recover, going from 10th to 8th position.

Both calculations consider the projections released by the IMF (International Monetary Fund) in October for almost 200 countries as a hypothesis.

Translated by Kiratiana Freelon

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