Economic Situation of the BRICS Countries

The comparative analysis of the economic situation of the BRICS countries by means of relevant macroeconomic indicators underscores contrasting evolutions and also different challenges and opportunities. For China, the economic “rebalancing†, involving the diminishing of the macroeconomic and financial imbalances, implies tighter credit controls, diminishing industrial capacities and reducing local authorities’ debt levels. Nevertheless such measures should be correlated with the general objectives of robust economic growth and a fair income allocation. In India, the economic slowdown during 2011-2013 is the result of political and legislative uncertainties, postponement of the approval and implementation of significant investment projects and energy system bottlenecks, with a direct impact on the total factor productivity. The results of the general elections from April-May 2014, implying the victory of the Bharatiya Janata Party, opened the way for the government led by Narendra Modi to achieve the economic objectives. For the other three BRICS countries, the situation is less favourable, as their GDP growth rates are inferior to the levels recorded by China and India and even to the average of the developing/emerging economies group, owing to structural deficiencies and a low level of productive investment as a percentage of GDP. Concerning the BRICS cooperation framework, we consider that their common economic objectives will continue to have the first priority on the common agenda, since only high growth rates allow these countries to reduce the distance they have to go through in order to catch up with the developed countries.