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Even With Strong Economic Growth, Brazil Lost One Position in the Ranking of the World’s Largest Economies in 2024. According to a Survey by Austin Rating, the Country Was Surpassed by Canada and Dropped from the 9th to the 10th Position.
Brazil’s GDP grew by 3.4% last year, marking one of the largest advances of the past decade. However, the strong devaluation of the real negated this growth when values were converted to dollars, resulting in an advance of only 0.3% in the global scenario.
In 2023, Brazil held the 9th position among the largest economies in the world. However, with the devaluation of the real and the conversion of GDP into dollars, the country was surpassed by Canada in 2024.
The Austin Rating survey revealed that, despite Brazilian GDP growing more than Canada’s, the exchange rate hurt Brazil’s position in the ranking. The loss of this position shows how the national economy still faces difficulties in maintaining stability in the international scenario.
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Brazilian GDP Grew, but Fell Behind in the Global Scenario
Brazil recorded a GDP growth of 3.4% in 2024, ranking as the 20th country with the highest growth among the 64 nations analyzed by Austin Rating. This performance marked the second largest growth for the country since 2011, surpassed only by 2021, when growth reached almost 5% due to the recovery from the pandemic crisis.
Despite this progress, comparisons with other economies show that Brazil’s growth was not enough to maintain its position in the global ranking. The exchange rate ended up reducing the positive impact of the GDP increase.
The Influence of the Exchange Rate on Brazil’s Drop in the Ranking
One of the main factors that led Brazil to lose position in the ranking of the largest economies in the world was the devaluation of the real. According to Austin Rating, Brazil’s average exchange rate depreciated by 7.3% in 2024.
This devaluation means that, when converting Brazilian GDP to dollars, growth was limited to only 0.3%. In other words, while the country had significant growth in local currency, in the global scenario, this growth practically disappeared due to the exchange rate.
Canada Surpassed Brazil Even While Growing Less
Canada, which now holds the 9th position, experienced an economic growth of only 1.6% last year — less than half of Brazil’s growth. However, the Canadian currency experienced less devaluation than the real, allowing the country to surpass Brazil in the ranking.
This example illustrates how exchange rate stability is essential for maintaining the competitiveness of an economy on a global scale. While Brazilian GDP advanced in reais, the loss of value of the national currency compromised results in the international scenario.
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