Currently, economic world are more dynamic. Many developed countries such as European Union, US, and Japan as the largest economic are going to be overtaken by developing countries, particularly BRIC. BRIC stands for Brazil, Russia, India, and China. Those countries are growing rapidly and making contribution to the world economy as Goldman Sachs (2010) said, “Between 2000 and 2008, the BRICs contributed almost 30% to global growth in US Dollar terms, compared with around 16% in the previous decade”. Furthermore, even Goldman Sachs predicted in 2050 the BRIC could account for almost 50% of global equity markets. This essay will compare and evaluate critically economic growth prospect of China and Brazil as two BRIC countries in the context of the continuing long term downturn in consumption and lending in the US, EU, and Japan.
Firstly, one of the important factors to evaluate a growth in a country is GDP per capita. China as a big country with the largest populations in the world has an increased in GDP per capita. According to the World Bank (2012), China’s GDP has massive increased about 10.4% in 2011 from $3,749 to $4,428 per capita. Comparing with Brazil as one of BRIC countries with the 5th largest population in the world, it also has an increased in GDP. Brazil GDP per capita in 2011 is about $10,710, which has risen about 7.5% from $8,251 per capita in 2010 (World Bank, 2012). In terms of GDP per capita, both countries have a massive increased to show the strength of their economy. Although Brazil has higher amount of GDP per capita rather than China, the increasing of GDP per capita in China is higher than Brazil. It means that China economy is growing faster than Brazil during 2010-2011.
Secondly, population is a common potential between both countries because high population means there are huge market sizes. Even though Brazil and China population have rose in the last 2 decade, but according to Goldman Sachs, currently the population growth of...
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