Brazil rose from seventh to sixth economy in the world, according to report released on December 18th by the World Bank. The International Comparison Program compared the size of the economy of 146 countries. The document revealed that Brazil accounts for half of the economy of South America. According to the report, the Brazilian Government expenditures correspond to two-thirds of the expenditure of Governments in the region. The research is based on 2005 numbers, when all the wealth produced around the world totaled US$ 55 trillion.

The study says that 40% of all goods and services produced came from developing countries. According to the World Bank, a change in the assessment formula allowed the elevation of Brazil and other countries, like China, that jumped from fourth to second place. The report used as the main measure, the purchasing power parity - which allows to evaluate the ability to purchase through local currency and no longer by simple conversion of local currency to the dollar. "With the purchasing power parity, it is possible to compare market size, structure of economies, and what money can be bought," says the report released by Bird.

The document places the United States in first place and China in second. Japan is in third; Germany in fourth, and India in fifth. Brazil occupies the sixth position, the same as United Kingdom, France, Russia and Italy. Spain and Mexico were ranked in seventh place. By the new parameter, United States, China, Japan, Germany and India respond together for nearly half of the world economy.

20 December 2011