Brazilian Economy Likely to Overtake South Korean Economy in Three Years

The South Korean economy, which joined the global top 10 in two years last year, is predicted to drop out of the list in three years by Brazil overtaking it. This has to do with the facts that South Korea’s working age population is decreasing, its industrial innovation is not enough, and participation in economic activities has declined there since the outbreak of COVID-19.

According to this month’s World Economic Outlook of the IMF, South Korea’s nominal GDP is estimated to increase 11.3 percent to US$1,908 billion this year and it is expected to remain on the top 10 list by surpassing Russia (US$1,648 billion), Brazil (US$1,646 billion), Australia (US$1,611 billion) and Spain (US$1,440 billion).

According to the IMF, the nominal GDP of South Korea is expected to exceed US$2 trillion in 2023 and the rankings are unlikely to change until then. “However, Brazil is expected to rise to 10th and South Korea is likely to fall to 11th in 2024 and they are likely to remain there until at least 2026,” it predicted, adding, “Brazil’s nominal GDP is estimated to exceed South Korea’s by a margin of US$5 billion in 2024 and the gap is estimated to be US$38 billion and US$72 billion in 2025 and 2026, respectively.”
 

The IMF also mentioned that Italy’s nominal GDP for this year is estimated at US$2.12 trillion, the country is likely to be the eighth-largest economy in the world in 2021 to 2025, and Canada is predicted to surpass it in 2026.