Intelligence
Over the past five years GDP per head in the emerging economies has grown by an annual average of 5.6%, compared with only 1.9% in the developed world.
This raises the following questions:
- Are you going to be a part of the world’s largest economies?
- How long will your current growth last?
- Are your competitors already ahead of you?
To answer them, you might need some information on the emerging economies.
Emerging economies
The emerging economies have survived a decade of crises and are once again on the road to economic strength. This is due to the structural reforms and sound economic policies that have enabled these countries to achieve high levels of sustainable growth and to withstand adverse shocks. Inflation and budget deficits are under control. Indeed, on average the deficits are much lower than those of the more developed economies.
Brazil, Russia, India and China are the four biggest emerging economies. They are collectively known as BRICs, an acronym created by Goldman Sachs in 2001. Together, these four economies account for two-fifths of the total GDP of all emerging economies. In terms of purchasing power, China and India are the largest, but Brazil and Russia are both ahead of India when production is measured in current dollars. All of the BRICs are amongst the world’s top ten economies in terms of purchasing-power-parity, and Brazil and China also belong to the top ten economies in terms of market exchange rates.
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