Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Has BRICs lost its steam?
Tue, 13 Jan Pre-Open

The power of the rapidly growing economies of Brazil, Russia, India and China in the last decade had caught the interest of overseas investors. This led to coining of the acronym BRICs in 2001 by Jim O'Neil, the former chief economist of Goldman Sachs. However in recent years, a number of developing nations have been afflicted with economic woes. Amongst them, Russia and Brazil have been adversely impacted by the meltdown in the commodities market. To add to this, economic sanctions against Russia and corruption scandal in Brazil have further exerted pressure on their economic growth. Even India and China have seen a moderation in economic expansion in the last two years. All this has cast a shadow on the prospects of the emerging market powerhouse of BRICS.

However, Jim O'Neil thinks otherwise. According to him, China and India will continue to be the growth drivers ensuring that BRICS remains a dominant force to reckon with in the global economy. China has been witnessing significant changes in its economic landscape. Old drivers of growth such as real estate and manufacturing have been hit by oversupply. But at the same time new-age hi-tech businesses such as internet, mobile and e-commerce have done exceedingly well in China. The humungous IPO by e-commerce giant Alibaba and business success by smartphone maker Xiaomi & internet company Baidu reflect their growing influence in the world. India, on the other hand, is expected to benefit from the reform-led growth policies and demographic advantage of a large young nation. Therefore, Jim O'Neil feels that the growing consumer markets of China and India will increasingly be the key for global consumption.

In fact the economist has said only China and India will remain the emerging superpowers if growth in Brazil and Russia fails to pick up by 2019. As per his projections, BRICS will grow as big as the Group of Seven Nations by 2035 backed by China and India that are likely to surpass US & France, respectively in size by then.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Has BRICs lost its steam?". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.