Brazil Goes XL

Brazil is now officially the largest Latin American economy in terms of US$ gross domestic product (GDP).

The Government’s Statistics Bureau (IBGE) reported a GDP of US$797 billion for 2005. This ranks Brazil as the 10th largest economy in the world followed by Russia at number 11 and Mexico at number 12. The dramatic GDP increase is due to a 13% appreciation of the real.

Other figures released by the IBGE:

· The Brazilian economy expanded by 2.3% in 2005.
· Per Capita GDP rose 0.8% in local currency but a staggering 30% in US dollars to US$4,326.
· Gross fixed investment in 2005 equaled 19.9% of GDP, a bit more than the 19.6% recorded in 2004.