With the following images, explain what is meant by a cyclical deficit 9:45l LTE OTodayEdit9:04 AMThe BRICS initially had high economic growth rates and increasing values of exports andimports. 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 arange of trade restrictions. Exports account for appraximately a third of the gross domesticproduct (GDP) of Russia and South Africa, a quarter of the GDP of China and India but lessthan a fifth of the GDP of Brazil The table below shows a range of economic data on theBRICSEconomicInflation Unemployment Income PerRate (%)Growth RateRate (96) Head (US$)(%)Brazil-3.79.56.915,800Russia-3.815.45.823,700India7.24.94.96,300China6.91.54.114,300South1.34.625.513,400AfricaSelected Economic Data 2015ITTE 9:44ul LTE OTodayEdit9:04 AMThe Rise of BRICSThe Rise of the BRICSThe original term "BRICS referred to Brazil, Russia, India and China. It was first used by JimO'Neil, an investment analyst working for the investment bank Goldman Sachs. In 2010 theoriginal four countries were joined by South Africa and became the BRICS. The BRICS areforecast to be the dominant economies by 2050 and are aready the four largest economiesoutside the OECD (Organization for Economic Co-operation and Development).The reasons why the BRICS are expected to overtake the USA and other developed economiesin a few decades is the relatively rapid economic growth rates of some of their members. TheBRICS avoided going into recession towards the end of the first decade of the twenty firstcentury but all experienced a cyclical budget deficit and in more recent years some haveexperienced negative economic growth.When Jim O'Neill coined the term BRICS he was not thinking of them as a trading bloc but theyare beginning to think of themselves as a group and they held their first official summit meetingin June 2009.The BRICS initially had high economic growth rates and increasing values of exports andimports. 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

A deficit arises when costs exceed income, imports outweigh exports, or liabilities exceed assets in…

Answered: With the following images, explain what…

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With the following images, explain what is meant by a cyclical deficit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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