The Rise of the BRICS The original term 'BRICS' referred to Brazil, Russia, India and China. It was first used by Jim O'Neil, an investment analyst working for the investment bank Goldman Sachs. In 2010 the original four countries were joined by South Africa and became the BRICS. The BRICS are forecast to be the dominant economies by 2050 and are already the four largest economies outside the OECD (Organization for Economic Co-operation and Development). The reasons why the BRICS are expected to overtake the USA and other developed economies in a few decades is the relatively rapid economic growth rates of some of their members. The BRICS avoided going into recession towards the end of the first decade of the twenty first century but all experienced a cyclical budget deficit and in more recent years some have experienced negative economic growth. When Jim O'Neill coined the term BRICS he was not thinking of them as a trading bloc but they are beginning to think of themselves as a group and they held their first official summit meeting in June 2009. The BRICS initially had high economic growth rates and increasing values of exports and imports. In more recent years, the macroeconomic performance of the countries has varied, Brazil, India and South Africa have recently experienced current account deficits whilst China, and Russia have continued to experience cube account surpluses All the countries impose a
The Rise of the BRICS The original term 'BRICS' referred to Brazil, Russia, India and China. It was first used by Jim O'Neil, an investment analyst working for the investment bank Goldman Sachs. In 2010 the original four countries were joined by South Africa and became the BRICS. The BRICS are forecast to be the dominant economies by 2050 and are already the four largest economies outside the OECD (Organization for Economic Co-operation and Development). The reasons why the BRICS are expected to overtake the USA and other developed economies in a few decades is the relatively rapid economic growth rates of some of their members. The BRICS avoided going into recession towards the end of the first decade of the twenty first century but all experienced a cyclical budget deficit and in more recent years some have experienced negative economic growth. When Jim O'Neill coined the term BRICS he was not thinking of them as a trading bloc but they are beginning to think of themselves as a group and they held their first official summit meeting in June 2009. The BRICS initially had high economic growth rates and increasing values of exports and imports. In more recent years, the macroeconomic performance of the countries has varied, Brazil, India and South Africa have recently experienced current account deficits whilst China, and Russia have continued to experience cube account surpluses All the countries impose a
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
With the following excerpts, explain the extent to which the extract supports the view that the BRICS have a similar macroeconomic performance.
Transcribed Image Text:9:44
ul LTE O
Today
Edit
9:04 AM
The Rise of BRICS
The Rise of the BRICS
The original term "BRICS referred to Brazil, Russia, India and China. It was first used by Jim
O'Neil, an investment analyst working for the investment bank Goldman Sachs. In 2010 the
original four countries were joined by South Africa and became the BRICS. The BRICS are
forecast to be the dominant economies by 2050 and are aready the four largest economies
outside the OECD (Organization for Economic Co-operation and Development).
The reasons why the BRICS are expected to overtake the USA and other developed economies
in a few decades is the relatively rapid economic growth rates of some of their members. The
BRICS avoided going into recession towards the end of the first decade of the twenty first
century but all experienced a cyclical budget deficit and in more recent years some have
experienced negative economic growth.
When Jim O'Neill coined the term BRICS he was not thinking of them as a trading bloc but they
are beginning to think of themselves as a group and they held their first official summit meeting
in June 2009.
The BRICS initially had high economic growth rates and increasing values of exports and
imports. In more recent years, the macroeconomic performance of the countries has varied,
Brazil, India and South Africa have recently experienced current account deficits whilst China,
and Russia have continued to exnerience cur accoint eurnhses All the countries imnose a
Transcribed Image Text:9:45
l LTE O
Today
Edit
9:04 AM
The BRICS initially had high economic growth rates and increasing values of exports and
imports. In more recent years, the macroeconomic performance of the countries has varied,
Brazil, India and South Africa have recently experienced current account deficits whilst China.
and Russia have continued to experience current account surpluses. All the countries impose a
range of trade restrictions. Exports account for appraximately a third of the gross domestic
product (GDP) of Russia and South Africa, a quarter of the GDP of China and India but less
than a fifth of the GDP of Brazil The table below shows a range of economic data on the
BRICS
Economic
Inflation Unemployment Income Per
Rate (%)
Growth Rate
Rate (96) Head (US$)
(%)
Brazil
-3.7
9.5
6.9
15,800
Russia
-3.8
15.4
5.8
23,700
India
7.2
4.9
4.9
6,300
China
6.9
1.5
4.1
14,300
South
1.3
4.6
25.5
13,400
Africa
Selected Economic Data 2015
ITTE
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education