BROWSE

BRIC

Definition

In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. It is typically rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or alternatively as the "Big Four". A related acronym, BRICS, adds South Africa.

BRIC is an acronym used to refer to the potentially four powerful economies of Brazil, Russia, India and China. This term BRIC, was coined by Goldman Sachs, an investment and banking firm, in 2001. The report published by this firm predicts that by the end of 2050, the four BRIC countries will become wealthier as compared to the current economically power states.

The same report further states that in the coming decades, both China and India will grow and become two of the leading suppliers of goods and services in the world while during the same time, Russia and Brazil will rise as the leading suppliers of industry raw materials.

However, these countries will not collectively form an alliance like the EU. Rather, they will work as economic blocs. In other words, they will trade with each other with respect to their mutual benefits. Both China and India will use raw materials from Russia and Brazil to manufacture their goods. In this way, all four BRIC countries will become economically strong and grow rapidly, giving the current economic powers a good run for their money. By 2050, these four countries recognized as the Big 4 will become leaders of output, global growth and development.

Currently, these four countries form forty percent of the global population and cover more than ¼ of the world’s land. They account for over 25% of the global GDP. These factors also contribute to the potential size of the economy and the capacity to perform as a powerful engine of economic development and growth.

How Investors Look at BRIC?

Investors across the globe seeking for long-term growth potential are now actively considering the BRIC as a lucrative source for investment opportunities. It is believed that the two factors that will largely contribute to the high growth and economic rise of these four countries are cheap labor and low production cost. Besides these, another distinguishing factor that may play a vital role is their significant influence on both global and regional affairs as all four countries are G 20 members.

Other countries that are seen being as successful as the BRIC in the future are:

  • Indonesia
  • South Africa
  • Mexico
  • Turkey
  • South Korea

Further Reading


Does higher economic and financial development lead to environmental degradation: evidence from BRIC countries
www.sciencedirect.com [PDF]
A vast number of studies addressed the environmental degradation and economic development but not financial development. Moreover, as argued by Stern [2004. The rise and fall of the environmental Kuznets curve. World Development 32, 1419–1439] they …

BRIC and the US financial crisis: An empirical investigation of stock and bond marketsBRIC and the US financial crisis: An empirical investigation of stock and bond markets
www.sciencedirect.com [PDF]
A vast number of studies addressed the environmental degradation and economic development but not financial development. Moreover, as argued by Stern [2004. The rise and fall of the environmental Kuznets curve. World Development 32, 1419–1439] they …

Contagion, decoupling and the spillover effects of the US financial crisis: Evidence from the BRIC marketsContagion, decoupling and the spillover effects of the US financial crisis: Evidence from the BRIC markets
www.sciencedirect.com [PDF]
A vast number of studies addressed the environmental degradation and economic development but not financial development. Moreover, as argued by Stern [2004. The rise and fall of the environmental Kuznets curve. World Development 32, 1419–1439] they …

A multiple and partial wavelet analysis of the economic policy uncertainty and tourism nexus in BRICA multiple and partial wavelet analysis of the economic policy uncertainty and tourism nexus in BRIC
www.tandfonline.com [PDF]
A vast number of studies addressed the environmental degradation and economic development but not financial development. Moreover, as argued by Stern [2004. The rise and fall of the environmental Kuznets curve. World Development 32, 1419–1439] they …

Structural breaks and financial volatility: lessons from the BRIC countriesStructural breaks and financial volatility: lessons from the BRIC countries
www.ceeol.com [PDF]
A vast number of studies addressed the environmental degradation and economic development but not financial development. Moreover, as argued by Stern [2004. The rise and fall of the environmental Kuznets curve. World Development 32, 1419–1439] they …

The impact of sudden changes on the persistence of volatility: Evidence from the BRIC countriesThe impact of sudden changes on the persistence of volatility: Evidence from the BRIC countries
www.tandfonline.com [PDF]
A vast number of studies addressed the environmental degradation and economic development but not financial development. Moreover, as argued by Stern [2004. The rise and fall of the environmental Kuznets curve. World Development 32, 1419–1439] they …

The interactive relationship between the US economic policy uncertainty and BRIC stock marketsThe interactive relationship between the US economic policy uncertainty and BRIC stock markets
www.sciencedirect.com [PDF]
A vast number of studies addressed the environmental degradation and economic development but not financial development. Moreover, as argued by Stern [2004. The rise and fall of the environmental Kuznets curve. World Development 32, 1419–1439] they …

… CO2 emissions, energy consumption, FDI (foreign direct investment) and GDP (gross domestic product): evidence from a panel of BRIC (Brazil, Russian Federation …… CO2 emissions, energy consumption, FDI (foreign direct investment) and GDP (gross domestic product): evidence from a panel of BRIC (Brazil, Russian Federation …
www.sciencedirect.com [PDF]
A vast number of studies addressed the environmental degradation and economic development but not financial development. Moreover, as argued by Stern [2004. The rise and fall of the environmental Kuznets curve. World Development 32, 1419–1439] they …



Q&A About BRIC


What is the acronym BRIC?

BRIC stands for Brazil, Russia, India and China.

Why did Goldman Sachs coin the term BRIC?

The firm wanted to predict what countries would have a high growth potential in 25.

What does it mean when you say that these four countries will not form an alliance like the EU?

It means that they will not work together as one economic bloc but rather each country will trade with other countries based on their mutual benefits.

Who coined the term BRIC?

Goldman Sachs coined the term BRIC in 21.