RAPIDLY DEVELOPING ECONOMIES, BRICs

BRIC = Brazil, Russia, India, China (Jim ONeill, Goldman Sachs, 2003) The economies of the BRICs are rapidly developing and by the year 2050 will eclipse most of the current richest countries of the world. Extension of the term BRIMC = Brazil, Russia, India, Mexico, China BRICS = Brazil, Russia, India, China, South Africa BRICA = Brazil, Russia, India, China, GCC Arab countries (Saudi Arabia, Quatar, Kuwait, Bahrain, UAE) BRICET = Brazil, Russia, India, China, Eastern Europe, Turkey CEMENT = Countries in Emerging Markets Excluded by New Terminology

The BRIC thesis

The economic potential of Brazil, Russia, India and China is such that tyey may become among the four most dominant economies by the year 2050. These countries are forcast to encompass over 39% of the worlds population and hold a combined GDP (PPP) of 15.435 trillion USD. BRICs are not a political alliance, either a formal trading association. Goldman sachs predicts China and India, respectively, to be the dominant global suppliers of manufactured goods and services while Brazil and Russia would be similarly dominant as suppliers of raw materials. India has the potential to grow the fastest among the BRICs over the next 30 to 50 years decline in working age population will happen later for India and Brazil than for Russia and China.

Follow-up report (2004)

In BRIC nations, the number of people with an annual income over 3000 USD will double within 3 years and reach 800 million within a decade. Massive rize in the size of the middle class! In 2025, it is calculated that the number of people earning over 15000 USD may reach over 200 million. First China and a decade later India will begin to dominate the world economy. The average wealth level of individuals in more advanced economies will continue to far outstrip the BRIC economy average. By 2025 the income per capita in the G6 will exceed 35000 USD, whereas only about 24 million people in the BRICs will have similar income levels.

Second Follow-up report (2007)

Indias influence on the world economy will be bigger and quicker than implied earlier. India has 10 of the 30 fastest-growing urban areas in the world, and 700 million peole are estimated to live in cities by 2050. From 2007 to 2020 Indias GDP per capita will quadruple, and that the Indian economy will surpass the US (in USD) by 2043. Criticism: Chinas and Russias disregard for human rights and democracy. The BRIC countries have enormous population of impoverished people limiting government finances, increasing social unrest, and limiting potential domestic economic demand.

Economy of Brazil, Russia, India, China

Statistics
GDP (PPP) trillion USD 2007 GDP growth rate % (2007) GDP per capita (2006/2007) PPP, USD Inflation rate % CPI (2006) Labour force, million (2006) Population below poverty line % (20022005)

Brazil
1.80

Russia
2.08

India
5.21

China
10.21

3.7 9531

8.1 14600

9.6 4543

11.4 7800

3.1 97.77 31

9 (nominal) 72.4 7.8

3.5 509.3 25

6.9 795.3 10

Economy of Brazil, Russia, India, China

Statistics
GDP by sector % (2003-2007): Agriculture Industry Services

Brazil

Russia

India

China

20 14 66

4.6 39.1 56.3

19.9 19.3 60.7

11.7 48.9 39.3

Economy of Brazil, Russia, India, China

Statistics
Unemployment (2006-2007) % Main industries

Brazil
9.6

Russia
7+ considerable underemployme nt Mining, machine building, defense, shipbuilding, agricultural machinery, construction equipment, consumer durables, textiles, foodstuffs, handicrafts

India
7.8

China
4.3 (official) 13 (unofficial) Mining and ore processing; machine building; armaments, textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products; food processing; transp. and telecom. eqipment

Textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment

Textiles, chemicals, food processing, steel, transportati on equipment, cement, mining, petroleum, machinery, software services

Main export goods of Brazil, Russia, India, China

Country Export value Billion USD 137.8 (2006) Export goods

Brazil

Transport equipment, iron ore, soybeans, footwear, coffee, cars Oil, natural gas, (ferrous) metals, timber Textile goods, gems and jewellery, engineering goods, chemicals, leather manufactures, services Office machinery and equipment, textiles and clothing, footwear, toys, mineral fuels, plastics, optical and medical equipment, iron and steel

Russia

348.9 (2007 est.)

India

125 (2006/2007)

China

1,216.1 (2007)

Main export partners of Brazil, Russia, India, China

Country Brazil Russia Main export partners US 7.8%, Argentina 8.5%, China 6.1%, Netherlands 4.2%, Germany 4.1% (2006) Netherlands 12.3%, Germany 8.4%, Italy 8.6%, China 5.4%, Ukraine 5.1%, Turkey 4.9%, Switzerland 4.1% (2006) US 18%, China 8.9%, UAE 8.4%, UK 4.7%, Hong Kong 4.2% (2005) US 21%, Hong Kong 16%, Japan 9.5%, South Korea 4.6%, Germany 4.2%, Netherlands 3.2%, UK 2.5%, Singapore 2.4% (2006)

India

China

Main import goods of Brazil, Russia, India, China

Country Main import goods

Brazil

Machinery, electical and transport equipment, chemical products, oil, automotive parts, electronics (91.4 billion USD, 2006) Steel, grains, automobiles??? (226.5 billion USD, 2007 est.)

Russia

India

Crude oil, machinery, gems, fertilizer, chemicals (187.9 billion USD, 2006 est.)
Electrical machinery, petroleum and related products, professional and scientific insruments, metalliferous ores and scrap, ofice machines and data processing equipment (953.9 billion USD, 2007)

China

Main import partners of Brazil, Russia, India, China

Country Brazil Main import partners US 16.2%, Argentina 8.8%, China 8.7%, Germany 7.1%, Nigeria 4.3%, Japan 4.2% (2006) Germany 13.9%, China 9.7%, Ukraine 7%, Japan 5.9%, South Korea 5.1%, US 4.8%, France 4.4%, Italy 4.3% (2006) China 7.2%, US 6.4%, Belgium 5.4%, Singapore 4.7%, Australia 4.2%, Germany 4.2%, UK 4.1% (2005) Japan 14.6%, South Korea 11.3%, Taiwan 10.9%, US 7.5%, Germany 4.8%, Malaysia 3.0%, Australia 2.4 %, Thailand 2.3% (2006)

Russia

India

China