“The BRIC nations – Brazil, Russia, India, and China – have been all the rage since Goldman Sachs economist Jim O’Neill coined the term in 2001.
But their luster has dulled a bit recently.
“The BRIC economies have been the brightest stars of the emerging world since the year 2000, contributing nearly two-fifths of global growth,” Mark Williams, chief Asia economist at Capital Economics, writes in a report obtained by CNBC.
More recently, they have been sources of disappointment.”
Capital Economics estimates that the four countries will decrease global growth by about half a percentage point from the International Monetary Fund’s projection of 4.1 percent.
Each country is enduring some economic sluggishness, Williams notes.
Brazil faces a heavy debt burden, weak business investment is curbing Russia’s commodities boom, India is making only slow progress in its efforts for economic modernization and reform, and China hasn’t yet been able to transform into an economy predicated on consumers….”
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