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:
- South Africa
- South Korea