The Economist writes about Brazil, Russia, India and China (BRIC) as the new, rising stars of the world economy, based on a Goldman Sachs study:
Today their combined GDP (at market exchange rates) is one-eighth of the output of the G6 (Goldman leaves out Canada, which accounts for only 3% of the G7’s GDP) But the study concludes that the total output of the four economies will overtake that of the G6 in less than 40 years. Of today’s G6, only America and Japan would then still be among the world’s six biggest economies.
China is tipped to overtake Germany by 2007, Japan by 2015 and America by 2041. India could overtake Japan by 2032. All four BRICs will be bigger than any western European economy by 2036. For firms looking where to invest, the most striking result is that, by 2009, the annual increase in total dollar spending in the BRICs could be greater than that in the G6. By 2025, spending could be increasing twice as fast in the BRICs.