The BRIC Countries label refers to a select group of four countries(Brazil, Russia, India and China). The four original BRIC Countries comprise more than 2.8 billion people or 40 percent of the world‘s population, cover more than a quarter of the world’s land area over three continents, and account for more than 25 percent of global GDP Building Better Global Economic BRICs
In 2001 and 2002, real GDP growth in large emerging market economies will exceed that of the G7.
At end-2000, GDP in US$ on a PPP basis in Brazil, Russia, India and China (BRIC) was about 23.3% of world GDP. On a current GDP basis, BRIC share of world GDP is 8%. Using current GDP, China’s GDP is bigger than that of Italy. Over the next 10 years, the weight of the BRICs and especially China in world GDP will grow, raising important issues about the global economic impact of fiscal and monetary policy in the BRICs.
In line with these prospects, world policymaking forums should be re-organized and in particular, the G7 should be adjusted to incorporate BRIC representatives.
Building Better Global Economic BRICs
This paper discusses the state of the world economy as we approach year-end, with particular emphasis on the relationship between the G7 and some of the larger emerging market economies. We show that our latest forecasts for 2001 and 2002 suggest a healthier outlook in some of the larger emerging market economies compared to the G7. We are currently forecasting 1.7% world GDP growth in 2002 with Brazil, Russia, India and China (BRICs) each set to grow again by more than the G7. Whilst the divergent degree of the 2001/2002 relative outlook is unlikely to be sustained over the next decade, a healthier environment for the BRICs seems likely to remain, and as a result, their share of world GDP is set to rise.
On a PPP basis, the aggregate size of the BRICs was about 23.3% of world GDP at the end of 2000, somewhat higher than both Euroland and Japan. Whilst on a...
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