BRIC countries (Brazil, Russia, India and China) ‘ready to rule world economy': BRIC Summit 2009!
America led the rest of the West into recession, as many European banks had massive exposure to bad mortgage loans in the United States. After a severe plunge in the last year, stock markets in emerging markets are riding a wave of confidence that the healing of the global economy is at hand and being led by the developing world, especially China and India.
It looks BRIC countries (Brazil, Russia, India and China) are able to realize rapid economic growth after the current financial crisis tides over, may further lead the world economy in a post-crisis era. The emerging economies, represented by the BRIC countries, are playing a stabilizing role amid the ongoing crisis.
The BRIC summit scheduled to be held in mid-June in Yekaterinburg, Russia, has displayed BRIC countries’ cooperative willingness to jointly ward off the crisis, may integrate respective resources to seek cooperation in aircraft manufacture, software development, industrial restructuring and the transition of economic growth patterns.
As i see the world economy has hit the bottom and stabilisation period has set in somewhere by the second half of 2009 the world economy will stabilise in and growth will begin in 2010.
The BRIC countries must play the stabilizing role in overcoming the crisis. The crisis gives these countries vast opportunities, as they may emerge from the crisis as leaders for economic growth.
In order to prevent such crisis in future the BRIC countries should restructure their economy, change the model of economic growth, depart from over-reliance on export and reorient themselves to the domestic market.
Brazil, Russia, India and China clubbed as BRIC are to hold their first-ever stand alone summit on June 16 in Russian city of Yekaterinburg in the Ural Mountains.
BRIC nations will become the “locomotive” to pull the global economy out of the current crisis as two major countries of the bloc — India and China — have suffered least from the downturn,… BRIC nations will be among the first, who, like a locomotive, will begin to pull out the world economy from the crisis. This is not just the wishful thinking, they are dynamically emerging economies Russian Deputy Prime Minister Sergei Ivanov has said.
“We may not like to admit it, but it’s time to get used to this fact: emerging markets such as China and India are quickly becoming the world’s new economic powerhouses,” Paul R. La Monica, CNNMoney.com editor wrote.
The Centre for Economics and Business Research (CEBR), a London-based economic consulting firm, had predicted emerging market economies may overtake the US and the rest of the Western world this year instead of 2015 as predicted earlier.
“We had expected this to happen, but not quite so soon. The West will have to start to get to grips with the fact that we are no longer dominant and cannot expect to have things our own way,” said Douglas McWilliams, chief executive of CEBR, in a statement.
China will surpass Japan this year as the world’s second largest economy. China is already the largest holder of U.S. Treasury notes and the country’s second biggest trading partner.
The Indian Nifty stock index has jumped by 64 percent in the last three months. China stocks were downgraded at BNP Paribas, which said investors should instead buy more Indian equities because valuations, fund flows and liquidity.
The Bombay Stock Exchange Sensitive Index may extend its rally by another 11 percent, BNP said, advising customers to buy State Bank of India and sell Chinese peers including Industrial & Commercial Bank of China Ltd.