Brazil, Russia, India and China, four countries expected to drive global growth in the years to come. Grouped under the acronym “BRIC”, emerging economic powers fuel the greed of foreign companies.
In a recent study, KPMG reveals that 76% of top 300 global companies of consumer goods and distribution predict an increase in consumer spending in the BRIC countries. These countries together to become major emerging powers.
Brazil experienced a growth of 7.5% in 2010, in particular related to liberalization of its economy and its growing middle class. This South American power stands out in primary production (energy and agriculture) and the aviation industry with Embraer, the third largest aircraft manufacturers in industrial sector after Airbus and Boeing. However, Brazil faces the challenge of social inequality.
Being a political and military power, Russia is trying to reassert its economic strength. Russia is rich in the natural resources sector (oil, gas, uranium, metals) and enjoys very good scientific expertise, it also suffers from a very low diversification of its economy. While its economies is in transition, it must also face the challenge of its Soviet legacy to enter the era of a modern economy.
Predominantly rural country, India managed to win in the global economy through urban centers that have specialized in the computer industry and services. It also has a pool of English-speaking workforce attracting qualified foreign companies. However, India suffers from urban poverty that it hardly eradicate.
China is seen not only as the leader of the BRICs, but also as an engine of global growth. In 2010, the country registered a growth of 10.3%, mainly driven by very competitive exports. It can engage in large infrastructure projects to bolster its own domestic growth and its attractiveness. China, however, must cope with large disparities in development.