BRICS countries profile, Brazil, Russia, India, China, South Africa, Economy

1. Badgers-group analysts
Polyakova, Sorokin, Rzayeva,
Novikov, Karpukhina
Our Team

2. BRICS countries:
New Centers of
Growth

3. Brazil
• Population: 196,7 million
• Area: 8,5 million km2
• Main exports:
• Capital: Bazilia
• Main imports:
(5th)
o transport equipment, iron ore,
soybeans, footwear, coffee,
autos
o machinery, electrical and
transport equipment, chemical
products, oil, automotive parts,
electronics
• Major trading partners:
o The US, China, Argentina
• GDP per capita: $12,916
• Inflation: 6,9 %

4. The Economy
Advantages
• The ninth largest
economy worldwide in
the terms of GDP
• One of the fastest
growing emerging
economies in the world
• Rich deposits of
minerals and natural
resources
Problems
• Misconceived and
inefficient use of
fiscal policy
• Bribery and
corruption
Growth Projections:
• 1.6% (2012) and 4% (2013)

5. Risks & Measures
RISKS:
• Risk of
‘overheating’
• Government’s
inability to take
public investments
forward
MEASURES:
• Prudential monetary
policy
• Prudential fiscal
policy

6. Russia
• Population: 143.3 million
• Area: 17,075,400 km2
•
o petroleum and petroleum
products, natural gas, metals,
wood and wood products,
chemicals, and a wide variety of
civilian and military manufactures
(1st)
• Capital: Moscow
Main exports:
•
Main imports:
o machinery, vehicles,
pharmaceutical products,
plastic, semi-finished metal
products, meat, fruits and nuts,
optical and medical instruments,
iron, steel
•
Major trading partners:
o European Union, CIS, China,
Japan
•
•
GDP per capita: $13,089
Inflation: 6,1%

7. The Economy
Advantages
Problems
• Huge territory
• Large reserve of
raw-materials
• Making single high
quality products
• Low internal energy
prices
• Huge inequality
between different
classes
• Low efficiency
• Dependence on oil
and gas
Growth Projections:
• 3.75% (2012 and 2013)

8. Risks & Measures
RISKS:
• Downside risks
• Deterioration of
external balances
• Spillovers from the
Middle East crisis
• Polarization of the
Russian society
MEASURES:
• Rebuilding fiscal
policy buffers
• Structural reforms
• A strengthening
of fiscal
frameworks
• Monetary policy
tightening

9. India
• Population: 1.2 bn (2th)
• Area: 3.3 million sq km (7th)
• Capital:
o New Delhi
• Main exports:
o Engineering goods, petroleum
products, chemicals,
pharmaceuticals, gems and
jewellery, textiles and garments,
agricultural products, iron ore.
• Main imports:
o Crude oil and related products,
machinery, electronic goods, gold
and silver
• Major trading partners:
o EU, China, the USA, the United Arab
Emirates
• GDP per capita: US $3,700
• Inflation: 6.95%

10. The Economy
Advantages
• Human resources
• Developed financial
market
• Healthy banking
system
• Growth in the
standard of living of
Indians
Problems
• Population
explosion
• Poverty
• Unemployment
• Rural urban divide
Growth Projections:
• 7% (2012 and 2013)

11. Risks & Measures
RISKS:
• Widening Current
Account Deficit
(CAD)
• Resurgence of
Inflation
• Rising Oil Prices
MEASURES:
• Maintaining Fiscal
Discipline
• Public expenditure to
health and education
• Reforms in labor lows
• Reorganization of
agriculture sector
• Introduction of
financial reforms

12. People's Republic of
China
• Population: 1.347 billion
• Area: 9,706,961 km2
•
Main exports:
o Electrical and other machinery,
including data processing
equipment, apparel, textiles, iron
and steel, optical and medical
equipment
(3rd/4th)
• Capital: Beijing (Peking)
•
Main imports:
o Electrical and other machinery,
oil and mineral fuels, optical and
medical equipment, metal ores,
plastics, organic chemicals
•
Major trading partners:
o Japan, South Korea, US,
Germany
•
•
GDP per capita: $5,414
Inflation: 5.4%

13. The Economy
Advantages
• Human resources
• Huge trade surplus
• Steady growth of
the economy
Problems
• Possible slowdown
in economic growth
• Long-term inflation
• Challenges from
rebalancing
Growth Projections:
• Above 8% (2012 and 2013)

14. Risks & Measures
RISKS:
• Spillovers to China
from the euro area
• Sharp slowdown in
investment
• Rising Oil Prices
MEASURES:
• Deploying fiscal
stimulus
• Targeted
support to the
needy
• Accelerating
reforms

15. The Republic
of South Africa
• Population: 50.5 million
• Area: 1.22 million sq km (25th)
• Capitals:
o Pretoria (executive capital);
o Cape Town (legislative
capital);
o Bloemfontein (judicial capital)
• Main exports:
o Gold, diamonds, metals and
minerals, cars, machinery
• Main export partners:
o China, US, Japan, Germany
• Main imports:
o Petrochemicals, car
components, petroleum oils
• Main import partners:
o China, Germany, US, Saudi
Arabia
• GDP per capita: US $8,066
• Inflation: 5%

16. The Economy
Advantages
Problems
• High levels of:
• Services – 66%
• Diversified Economy
o unemployment
o inequality
• Poverty
• Crime
Agriculture
Industry
Services
Growth Projections:
• 2,6% (2012)
• 3% (2013)

17. Risks & Measures
RISKS:
• Further growth of
MEASURES:
• Supportive vein:
unemployment, povert
o stengthen policy buffers
y, inequality
o contingency plans
• External Spillovers (esp.
in the euro area &
China)
• Soft commodity prices
• Monetary policy:
o accomodative
• Fiscal policy:
o sustain debt rate
o fiscal deficit is allowed to
support activity

18. Bibliography
• BRIC-a-brac. [The Economist]. Aug 8th, 2012
• India: 2012 Article IV Consultation. [International
Monetary Fund]. 2012 - 69 pages
• Keeler, D. Special Report: BRICs.[Global Finance]. February,
2012
• The BRICs: propping up the global economy [Grant thornton
international]. 2012 – 10 pages
• The BRICs report. [Oxford University Press]. 2012. – 182
pages
• Will India Be The First BRIC FallenAngel?
[Standard&Poor’s].June 8th, 2012
• Zotin, A. BRIC – stuck in between the past and the
future.[Kommersant]. September 18th, 2012

19. Thank you for your
attention!