GDP Analysis of BRIC Economies

The BRIC countries are Brazil, Russia, India and China which are among the biggest and fastest growing
emerging economies. The concept of BRIC emerged with the Goldman Sachs paper titled Building
Better Economic BRICs in 2001.
In 2010, while the four BRIC countries accounted for over a quarter of the world's land area and more
than 40% of the world population, they accounted for only one-quarter of the world gross national
income. Projections on the future power of the BRIC economies vary widely. Some sources suggest that
they might overtake the G7 economies by 2027. More modestly, Goldman Sachs claims that, although
the four BRIC countries are developing rapidly, it would take 2050 by when their combined economies
could eclipse the economies of the current richest countries of the world.
Brazil:
Brazil has the seventh largest economy by nominal GDP in the world, and seventh largest by purchasing
power parity. The Brazilian economy is characterized by abundant natural resources, moderately free
markets and an inward-oriented economy.
Brazils GDP grows at over 5% on average with current per capita GDP of $12,789 on average. CPI
inflation is at 6.5%(June 2014). The chief export goods are: transport equipment, iron ore, soybeans,
footwear, coffee, autos and imports are machinery, electrical and transport equipment, chemical
products, oil, automotive parts, electronics.
The countrys scientific and technological development along with rising consumption is argued to be
attractive to foreign direct investment, which has averaged US$30 billion per year the last years,
compared to only US$2 billion per year last decade, thus showing a remarkable growth. Bureaucracy,
corruption and weak infrastructure remain the biggest obstacles to economic development.
Russia:
conomy of Russia is a mixed economy with state ownership in strategic areas of the economy. Market
reforms of the 1990s privatized much of Russian industry and agriculture, with notable exceptions in the
energy and defense-related sectors.
Russia has the lowest GDP growth among BRIC nations at ~1.3%. The GDP per capita is $14818. CPI
inflation is 7.8%. Russia is unusual among the major economies in the way it relies on energy revenues
to drive growth. The country has an abundance of natural resources, including oil, natural gas and
precious metals, which make up a major share of Russia's exports. As of 2012 oil and gas sector
accounted for 16% of the GDP, 52% of federal budget revenues and over 70% of total exports.

Russia has a large and sophisticated arms industry, capable of designing and manufacturing high-tech
military equipment, including a fifth-generation fighter jet. The value of Russian arms exports totalled
$15.7 billion in 2013second only to the US. Top military exports from Russia include combat aircraft,
air defence systems, ships, submarines.
India:
The economy of India is the tenth-largest in the world by nominal GDP and the third-largest by
purchasing power parity (PPP). India was the 19th-largest merchandise, the 6th largest services
exporter in the world in 2013 and is the 7th largest services importer.
Indias GDP growth rate is at about 5%. Per Capita GDP of India is lowest among BRICS at $1,504. The
Inflation is among the highest at CPI 8.7%. The key industries in India are agriculture, petroleum
products, chemicals, pharmaceuticals, software, textiles, steel, transportation equipment, machinery,
cement, mining and construction.
Agriculture sector is the largest employer in India's economy but contributes a declining share of its GDP
13.7%. The manufacturing industry has held a constant share of its economic contribution, while the
fastest-growing part of the economy has been its services sector - which includes construction, telecom,
software and information technologies, infrastructure, tourism, education, health care, travel, trade,
banking and others components of its economy.
China:
The socialist market economy of China is the world's second largest economy by nominal GDP and by
purchasing power parity after the United States. It is the world's fastest-growing major economy, with
growth rates averaging 10% over the past 30 years. China is also the largest exporter and second largest
importer of goods in the world. China is the largest manufacturing economy in the world outpacing its
world rival in this category, the service-driven economy of the United States of America.
China is the fast growing BRIC economy with average GDP growth of more than 9%. The percapita GDP
is $6,747. CPI Inflation is low at 2.5%. Growth in exports has been the biggest factor fueling Chinas
massive growth.
Comparison of BRIC Economies:

Economic Growth Breakdown of top 11 economic powers
Historically, economic strength has always been defined by industrial and production capabilities. The
non-BRIC countries are moving towards service-oriented economies, while the BRIC economies are all
moving towards production economies.

GDP at PPP(Billion 2005$)


GDP Per Capita(Thousand 2005$)

Human Development Index
BRIC Nations are forecasted to grow 2000% on average between 2006 and 2050. Indias projection is the
highest at 4043%. From the comparison of nations, the services sector in India especially that
contributing to improvement in human wellness is one of the most promising sectors.