Brazilian purchasing power similar to European countries
DCI - 12/18/2007
The parity of the purchasing power of the Brazilian economy represents 3% of the total world Gross Domestic Product (GDP), next to United Kingdom, Russia, France and Italy, according to the International Comparison Programme (ICP) research elaborated by the World Bank (Bird), According to the study released yesterday in Washington, USA, the production and sale of goods and services guarantee Brazil the tenth place in the parity purchasing power ranking that compared productivity, price, and consumption levels in 146 countries. The data also show that the developing economies have contributed with 40% of the world GDP. In absolute numbers, the International Comparison Programme (ICP) indicates that 12 countries are responsible for two thirds of the whole wealth produced in the world. The USA come in first place with the largest participation of the purchasing power in relation to the world GDP with 23%, followed by China (10%), Japan (7%), Germany (5%), and India (4%). The United Kingdom, France, Russia and Brazil are even with 3%; the Brazilian purchasing power is also superior to that of Spain (2%) and Mexico (2%). Dennis Trewin, managing director of the IPC, highlights the extent of the study. "Teams allocated in several regions of the world in 2005 identified the pricing characteristics of goods and services, gathering prices of more than 1,000 items in order to measure the parity purchasing power in different economies", explained Trewin. The achieved result, according to the specialist, allows comparing the size of the market, the economic structure and what money can buy in each of the researched economies. The greater participation of Brazil, Russia, China and India, the so-called BRICs, in the world economy is one of the main points of the ICP. Brazil and Russia share the participation in the world GDP with developed countries, whereas China appears in second place, behind the USA.