Few financial ideas have caught on as rapidly as “BRICs,” which stands for Brazil, Russia, India and China, the “Big Four,” fast-growth economies on the earth at present. Goldman Sachs economist Jim O’Neill coined the phrase back in 2003, and it at present has come into widespread use as a symbol of a shift in global economic power away from the developed G7 economies on the way to the developing world.
By dint of their sheer size and population — and their collective conclusion to hold their own particular brand of capitalism — BRICs are the economic way forward for the world. Together, the BRICs include above 25% around the globe’s land mass and 40% of the world’s population. And thanks to their predicted quick growth by 2050, the BRICs possibly will cover the joint economies of the current richest nations of the world. China and India will become the main worldwide suppliers of manufactured goods as well as services. Brazil along with Russia will be the world’s top suppliers of commodities. The BRICs in the present day already account for a combined GDP of $15.435 trillion dollars on a buying power basis. With that measure, they are already as a group better than the United States.
Here’s what Goldman Sachs had to disclose in its original report “Dreaming with BRICS: The Path to 2050,” published in 2003.
* China’s financial system will beat Germany in the buy brics online following few years, Japan by 2015, as well as the America by 2041.
* India’s development speed will be the highest — not China’s — and it’ll overtake Japan (today the world’s second-largest economy) by 2032.
* BRICs’ currencies can go up in price by 300% over the following 50 years, given that a huge tailwind for investors in BRIC assets.
* Taken together, the BRICs could be larger than the United States as well as the developed economies of Europe in 40 years.