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Global economy is under uncertainty due to recent meltdown of economic and industrial growth. Though the process of globalisation has boosted economic growth, resulting in the structural changes of the world economy, this has triggered rapid changes in developing economies and may predominantly contribute to global economic growth in the coming decade, though it has posed several challenges in countries such as Brazil, Russia, India and China. There have been studies showing that there may be a major shift in the global economic balance and it is foreseen that BRIC countries may emerge as a global economy in future. As a result, the current slowdown in the economy is a major concern of all countries. This phenomenon necessitates a broad analysis. Therefore, the purpose of this paper is to compare various economic indicators such as GDP, GDP composition, labour force, imports and exports of the BRIC nations. Based on such analysis, future trends and potential of both the economies are discussed.
Comparison of Economic Indicators
In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. It is typically rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or alternatively as the "Big Four". The acronym was coined by Jim O'Neill in a 2001 paper entitled "Building Better Global Economic BRICs". The acronym has come into widespread use as a symbol of the shift in global economic power away from the developed G7 economies towards the developing world. It is estimated that BRIC economies will overtake G7 economies by 2027. These countries encompass over 25% of the world's land coverage and 40% of the world's population and hold a combined GDP (PPP) of 20.44 trillion dollars. On almost every scale, they would be the largest entity on the global stage. These four countries are among the biggest and fastest growing emerging markets. However, it is not the intent of Goldman Sachs to argue that these four countries are a political alliance (such as the European Union) or any formal trading association, like ASEAN. Nevertheless, they have taken steps to increase their political cooperation, mainly as a way of influencing the United States position on major trade accords, or, through the implicit threat of political cooperation, as a way of extracting political concessions from the United States, such as the proposed nuclear cooperation with India. FACTS:
Between 2000 and 2005, BRIC nations contributed roughly 28% of global growth in US dollar terms and 55% in purchasing power parity (PPP) terms. Their share of global trade continues to climb at a rapid rate. The BRICs' share of oil demand is moving steadily higher, rising from 15% to 21% during 2000 to 2010. The BRICs have played an important part in global financial developments. Latest estimates suggest that the BRICs now hold more than one third of world reserves. Also, despite the reserve accumulation, real exchange rates in each country have appreciated over the last couple of years. BRICs' current accounts continue to be in surplus, reflecting the group's key role in the global savings supply. Further, the BRICs' share as a destination for global FDI also continues to rise. The BRICs' market capitalization is currently around 4% of the global total.
ECONOMIC STATUS OF BRIC NATIONS:
Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily...
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