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Brazil ranks as the world's tenth economy, ahead of South Korea, Holland and Australia, according to a GDP new calculation system announced by the government and which a majority of Brazilians economists consider more in line with reality.
With the modified system, the Brazilian economy growth rate in past four years has experienced an encouraging extra increase. In 2002 real increase was 2.7% (1.9%); in 2003, 1.1% (0.5%); in 2004 5.7% (4.9%) and in 2005, 2.9% (2.3%).
Brazil's GDP in 2005 reached US$ 882.130 billion (at the exchange rate to the time) which means the country climbed from position 11 to 10 in the world's country economy ranking, according to Austin Rating consultants.
This in practical terms means that in 2005 the Brazilian economy, placed in position 11, was larger than South Korea's position 10, ahead of Holland and Australia even in 2003 and 2004.
However the methodological reform has had to live with a certain degree of suspicion since growth rates from 2003 to 2005, the first three years of the Lula da Silva administration, were considerably significant and not so much those between 2000 and 2002, the last three years of former president Fernando Henrique Cardoso (1995/2002).
According to the reformed calculation system, in 2000 the Brazilian economy expanded 4.3% just below the original 4.4%, while in 2001 the previous and reformed systems coincided in 1.3%.
"The good news is that GDP was growing above original estimates and now we have a more precise calculation," said Finance Minister Guido Mantega.
Mantega believes that with the new criteria, growth of the Brazilian economy in 2006 could be in the range of 3.3 to 3.6%, well above the 2.9% officially released last week based on the former criteria.
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You see China, despite their much higher growth rate are even poorer than Brazil , for the time being, but they are filling the gap since they grow at 3 to times your growth rate.
And Brazil is NOT filling the gap with wealthier countries, since YOU DO NOT GROW AT A HIGHER RATE THAN THEM !!!!
Simple basic maths !!!!
Finally I take with suspicion the article where it says :" However the methodological reform has had to live with a certain degree of suspicion since growth rates from 2003 to 2005, the first three years of the Lula da Silva administration, were considerably significant and not so much those between 2000 and 2002, the last three years of former president Fernando Henrique Cardoso (1995/2002). "
Because in 2003 Brazil grew by 0,5 %, in 2004 by 5 % and in 2005 by 2,3 %
Average of the first 3 years : 2,6 %
Is this significantly above the preceding years ????? LAUGH.....!
May be so....but there has been a worldwide recession too.
Anyway you look at it, using a time frame of 3, 5, 10, 20 or 30 years, Brazil average trend growth rate is near 2,5 % !!!!!!!!
And if you believe that you are filling the gap with wealthier countries, your growth rate is simply not in harmony with such statement.
Reality thus being that ALL developing countries are filling the gap (or increasing it if wealthier) against Brazil.
Meaning that if not already done they will be wealthier than you in 1 ir 2 decades.
On the other hand Brazil as said will not fill the gap with wealthier countries.
SIMPLE CONCLUSION : basic maths clearly show that over time Brazi.....WILL lower its world ranking on a GDP per capita !!!!!
And no one can say the opposite....SO FAR !
And those who invented the name of BRIC have done en error in their long term estimates for Brazil.
It could remain as BRIC due to the population, but it was already the case before they invented the name of BRIC anyway.
BUT NOT ON A PER CAPITA BASIS !!!!
THEREFORE BRAZIL SHOULD BE FIRED AND THE NEW NAME CHANGED TO.....RIC....IF ON A PER CAPITA BASIS COMPARISONS..... AND BRIC IF ON A COUNTRY BASIS COMPARISONS.
JUST THINK ABOUT IT : it also means that over time despite you are already one of the world worst in the wealth inequality.....NOTHING WILL EVER CHANGE, WORSE YET.....IT WILL GET WORSE !!!!!!!!