BRIC COUNTRIESTom Dewaele 2FV04

Contents

1. BRIC, WTH???

2. Predictions for 2050

3. What are “emerging markets”?

4. The BRIC ‘n MITSK

5. The Brazilian giant woke up

6. U.S. Economy up against a BRIC wall

7. Conclusion

BRIC, WTH???

• Acronym• Jim O’Neil (2001)• The Big Four• Fastest growing &

largest emerging• 3 billion people• 25% of global GDP• Future?

Predictions for 2050

What are “emerging markets”?

• Concept: 30 years ago• Replacement for

pejorative “Third World”-tag• Rapid growth and industrialization• Jim O’Neill: “term is no longe helpful”

(2012)• 1% of Global GDP• Potential to rise

The BRIC ‘n MITSK

• January 2012 => Jim O’Neill• Adds 4 new countries• Mexico, Indonesia, Turkey,

South-Korea• Account in global GDP

Mexico Indonesia Turkey South-Korea

1.6 % 1.1 % 1.2 % 1.6 %

The Brazilian giant woke up

• Economic growth figures (2011)– Not as strong as hoped+ 6th biggest economy in the world!!+ Highest currency appreciation

• 2.7% (<=>7.5% in 2010)

• Estimates for 2012

Estimates 2012

The Brazilian giant woke up

• Brazil USED to be => Pais do Futuro

• Due to:– Economic crisis– Political crisis

• Future never seemed to come

• However... the last ten years:

Brazil’s past 10 years

• Agriculture superpower• Massive oil reserves• Paid debts to IMF• Rise of new middle class

=> Purchasing Power• Lifted thousand out of poverty• Wave of construction

– 2011: 22 new shopping centers

• Host for:– World Cup 2014– Olympics 2016

Conclusion: U.S. Economy up against a BRIC Wall??

• Economic center of gravity of the world=> is shifting

• Towards BRIC – Countries• Double reason:

– Rise of emerging markets– Decline in U.S and Eurozone economy

V.S.

BRIC COUNTRIESTom Dewaele 2FV04

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