Continued Success of the BRICs

A recent article in the Financial Times highlights the growing investment trends and economic successes of the BRIC countries.  Just six years ago, in late 2001, Jim O’Neill of Goldman Sachs coined the term “BRIC” in predicting that Brazil, Russia, India, and China would account for more than 10 percent of world GDP by 2010.  Yet, even this bold prediction was short of the mark:

last year, the IMF calculated that the BRICs and other emerging markets already account for 30 percent of the global economy and 47 percent of global economic growth.

The BRICs boosted the share of global exports from emerging markets from 20 percent in 1970 to 42 percent in 2006.  Their growth, furthermore, is not being driven solely by commodities exports and low-cost manufacturing.  Instead, India and other emerging Asian economies are home to 26 percent of the global information technology services market, and this share is growing quicker than IT services in developed countries.  To read more about the upcoming meeting between the foreign ministers of the BRIC countries, click here.