BRICs: Architects of a new world

Just as the US emerged in the late 19th Century and Japan in the 1960s and 1970s, the stage is set for the BRIC economies - Brazil, Russia, India and China - to challenge the world order in global economics in the first half of the 21st Century.

• Brazil, Russia, India and China - the BRIC economies - are amongst the largest and fastest growing markets in the world*.
• Already the BRIC economies have recorded significantly higher growth rates than the western G6 industrial nations in recent years*.
• By 2050, only the US and Japan may be among the six largest economies in US dollar terms*.
• The emergence of these super economies is well publicised; whether its Brazil and China uniting on trade or Russian companies queuing up to list on the London Stock Exchange, the rise of these countries is hitting the headlines.
• The rationale for investing in these countries is persuasive. Each of them offers a unique investment proposition: Brazil is benefiting from the increase in global demand for its base materials such as iron ore whereas Russia, with its huge oil and gas reserves, is profiting from the global shortage of energy sources. India is emerging as a clear winner in the global outsourcing trend whilst China’s growth is driven by its industrial might.

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.

*Source; Goldman Sachs, 2003, Dreaming with BRICs: The Path to 2050

	Brazil   one of the world's largest commodity exporters home to the largest iron ore supplies exports also include coffee and soya   Russia   home to the largest supply of natural gas 15% of the world's crude oil reserves country debt awarded investment-grade rating in 2005   India   highly skilled workforce key centre for international companies looking to outsource large infrastructure programmes   China   5th largest exporter of merchandise huge domestic consumption 2008 Olympic Games

BRIC is emerging as an important component for any long-term investment portfolio.

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