Despite performing below expectations, Brazil’s economy is now the sixth largest economy in the world.
Brazil’s finance minister said that it has become the sixth largest economy in the world, surpassing the United Kingdom, despite a slowdown in its economic growth.
According to the BBC, the National Institute of Economic and Social Research and the Centre for Economics and Business Research confirmed that Brazil’s economy had overtaken the United Kingdom, standing at $2.52 trillion, compared to the UK’s $2.48 trillion.
Brazilian Finance Minister Guido Mantega said, “It is not important to be the world’s sixth-biggest economy, but to be among the most dynamic economies, and with sustainable growth.”
The Brazilian economy rose 2.7 percent, compared to the UK’s 0.8 percent, said the Guardian. The five largest economies remain the United States, China, Japan, Germany and France.
However, that number is a significant slowdown from the 7.5 percent growth the Brazilian economy saw in 2010, noted CNN. The economic problems in Europe and the US, combined with decreasing demand from China and a slowdown in domestic consumption were to blame for the sluggish growth, said CNN.
President Dilma Rousseff and her economic team have implemented lower taxes and a higher minimum wage, in an effort to boost economic growth.
Mantega predicted a 4.5 percent growth for 2012, according to Bloomberg. As Brazil prepared to host the 2014 World Cup and the 2016 Summer Olympics, Rousseff said, “The Brazilian government will take a pro-active position, increasingly expanding sustainable economic growth, while respecting macroeconomic stability with solid public finances.”