The four BRIC nations
Brazil: the commodities warehouse
Brazil's exports, including soya beans, coffee, cocoa and iron is burgeoning. In 2004, Brazil’s Companhia Vale do Rio Doce (CVRD), the world’s number one iron miner, signed a $5bn deal with China – evidence of their increasing collaboration on trade. The value of trade between Brazil and India is also increasing rapidly.
Russia: energy store
Russia has the world's largest gas and oil reserves and is home to companies such as the $12bn energy giant Rosneft. Already the largest supplier of oil to China, Russia has recently developed a strategic alliance with Brazil. The exploitation of Russia's enormous mineral wealth is further strengthening the economy fuelling the consumption of a growing middle class.
India: service centre
India's exceptionally skilled work force has made it a key location for international companies looking to outsource work. It is also making great strides in Information Technology. Large infrastructure programmes, including the construction or roads and motorways, are giving the economy extra momentum and enabling India's vast population to benefit from the country's economic growth which has created demand for goods from China.
China: a trading giant
China is now the world's 5th largest exporter of merchandise. Indeed, so successful has it been in exporting competitively priced goods that it is already a concern to European countries such as France and Italy, resulting in the highly-publicised trade battle, 'Bra Wars'.
China's growth has also helped other BRIC economies; for example, Chinese firms have helped pay for a steel plant and alumina refinery in North East Brazil and have offered billions of dollars in investment to help improve Brazil's rail, roads and ports.
Macro statistics should be treated with
caution and stock markets do not necessarily
reflect economic production. Nevertheless,
we believe the case for BRICs is compelling as
they continue to generate headlines amongst
leading economists and the mainstream press.
