BRIC
BRIC is an acronym that refers to the fast growing developing economies of Brazil, Russia, India, and China. The acronym was first coined and prominently used by the bank holding company Goldman Sachs in 2001. Goldman Sachs argued that, since they are developing rapidly, by 2050 the combined economies of the BRICs could eclipse the combined economies of the current richest countries of the world.
In 2007 the BRIC nations accounted for about 12% of the world's GDP, up from 8% in 2000. According to Goldman Sachs' forecasts, the BRIC economies could be half the size of the G-6 by 2025, and surpass them by 2045. Despite all the differences among the BRIC nations and uncertainties regarding the BRIC thesis, these four economies already represent a growing economic power, with potential to convert into world political clout.
BRIC countries have large and growing domestic markets and many companies in the BRIC nations are expanding into other developing-world markets. The World Bank Group estimates that south-south corporate investment more than tripled to $47 billion from 1995 to 2003 and it is currently closer to $60 billion.
- In 2000 developing countries accounted for 37% of world output (at
purchasing power parities). In 2008 their share rose to 45%.
- From 2000 to 2008, BRIC's share of the
world output rose from 16% to 22%.
- Almost 60% of
all the increase in world output that occurred in 2000-08 happened in
developing countries; half of it took place in the BRICs alone.
Source: The Economist
