Brazil to become fifth largest economy within five years

Brazil appears to be bucking the trend after creating 1.3 million jobs last year - when other economies have battling with rising unemployment.

The economy has been going from strength to strength, growing by an annualised rate of 5%.

The country’s labour minister expects to create a further 2 million jobs in 2010 and, as a result, President Luiz Inacio Lula da Silva, said Brazil will become the world’s fifth largest economy by 2016.

The President made the comment as he outlined plans for a new Fiat factory in north-eastern Brazil.

Earlier this month, Fiat announced plans to invest $1.7 billion (£1.1 billion) in the new plant, which will produce approximately 200,000 vehicles a year and will provide jobs for more than 3,000 people.

The President said: “Fiat was right to set up in northeastern Brazil, and if it were up to me, whether I am president or not, other companies would set up in other states” in the region.

“Brazil will be the fifth largest economy in the world before the Olympic Games” to be held in Rio De Janeiro in 2016, he added.

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