The World Bank’s predictions of a ‘perfect storm’ in 2016 as growth slows in the so-called BRICS (Brazil, Russia, India, China and South Africa) economies may be overstating the case, say the business people who deal with each nation’s challenges every day.
According to Odgers Berndtson’s senior partners in each of the BRICS countries, business leaders have remained upbeat, if cautious, about the prospects for investors into their respective economies.
BRICS might have been a useful acronym to band up-and-coming economies together, but it’s the differences that can determine where money may be made – or lost.
Those seeking exponential growth won’t find what they’re looking for, but the BRICS nations still operate with a dynamism that developed countries would envy.
BRICS might have been a useful acronym to band up-and-coming economies together, but it’s the differences that can determine where money may be made – or lost. By the World Bank’s own forecasts for the year ahead, China’s growth could slow but India will continue to expand. Recessions in Brazil and Russia will bottom out, while Africa as a whole could pick up to 4.2 per cent growth in 2016.
But can the BRICS economies still fuel global trade and growth? Expectations may have to be lowered, but as the World Bank’s president Dr. Jim Yong Kim has indicated, the benefits from reforms to governance and business conditions in developing countries could help offset the effects of slow growth in larger economies. Growth forecasting is never an exact science, more a fine art, so should the mood in each BRICS nation be the key to where – and why – to invest?
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By Paul Butterworth MNI, Global Head of the Maritime & Shipping Practice at Odgers Berndtson