BRIC Countries: An Overview

The term BRIC is a short form of Brazil, Russia, India & China. There is so much being discussed about BRIC countries that I thought we should take an overview of what BRIC countries signify in the world of Investments.

World economies have seen many bumps & turbulence over a recent past. That is the main reason why BRIC countries have gained importance in the eyes of world wide investors.  Reducing rates of internal economical growth, reduction in domestic demand, falling markets have created major threats to the survival of Global Investors & they are searching for new avenues for investing their funds to ensure a good return on capital & also the safety for their capital.

Definition of BRIC:

Jim O'Neill from Goldman Sachs head of Global Economic Research came up with this short form BRIC for Brazil, Russia, India & China. He first defined the BRIC Countries in his report on Emerging Markets in year 2001.
What makes BRIC different from other Economies:

As per Jim O'Neill BRIC Report the combined economical wealth of these four nations would be more than the wealth of the richest nations by year 2050. As of today these four countries taken together would account for around 40 % of World Population & around 25 % of Global Land. This optimistic scenario would offer better growth as well as safety for investors.
  • Brazil is 5th most populated Country of the world & the 9th highest GDP in the world.  
  • Russia is at 7th rank in most highest GDP.  
  • India is the 2nd most populated country of the world & the 4th highest GDP rank.  
  • China is the most populated country of the world  & the 2nd highest GDP. The 1st rank being United States.
As per the Goldman Sach report these four countries would be having sustained growth over next 40 years that would surpass the European Countries in terms of economic growth.

We have seen many ups & downs in the Global economies due to credit crisis & various bubbles created through improper trading practices. Emerging markets are becoming heaven for global investors due to their realistic & somehow conservative growth policies.

BRIC Countries offer high level of economic growth with sustainable rate of economic activity that is estimated to last for some decades to come. Given the turbulent global market scenario investor are getting attracted to BRIC nations due to high rate of return on investment plus a Capital appreciation anticipated.

As a Global Investor one can not ignore the growth potential of these countries & any investment in these countries would guarantee an improvement Portfolio performance. This has diverted the attention of most of the global Investors from western countries to BRIC nations. This global attention would again help these countries to harness their resources in most optimum way & would make these markets more competitive ensuring more transparency in market operations.

The chain effect of this would last for at least 3 to 4 decades to come & these countries would become a focal point for global investors to invest.

In summary I can say that as a Global investor you can not ignore the importance of BRIC countries & you can further compare these countries among themselves to find out which is the best one to invest in to optimize your investment portfolio.

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