BRIC is an abbreviation for four developing countries of Brazil, Russian Federation, India and China. These four countries are at an analogous stage of new economic development. BRIC maintains trade and investment activities within the four countries. There is an enormous growth in financial and economic sectors in Brazil, Russian Federation, India and China. India and China comprise of large-scale production platforms and with available consumers, global investments is easy, whereas Russia exporters oil and commodities. Brazil and Latin America show up as being at the middle.
The fast growing countries with much of government spending are Brazil, Russian Federation, India and China (BRIC). China is the leading country among all the four countries in government spending industry with a rapid growth, followed by Russia, Brazil and India with market revenues in billions respectively. Among the BRIC countries, Russia is the fastest growing country in fields of aerospace & defence industry. China is already in the lead in this industry followed by Russia, India and Brazil. BRIC countries are emerging and swiftly growing in the construction industry and India tops the list followed by China, Russia and Brazil. By the year 2018, China is expected to stand first in almost all sectors among the BRIC nations followed by India, Brazil and Russia respectively. Brazil, Russian Federation, India and China (BRIC) are the emerging and fast growing countries within the government spending’s industry and had a total market value of $5,650.6 billion in 2016. China was the fastest growing country with a CAGR of 10.6% over the 2012-16 period. Within the government spending industry, China is the leading country among the BRIC nations with market revenues of $2,982.2 billion in 2016. This was followed by Russia, Brazil and India with a value of $1,035.8, $927.7, and $704.8 billion, respectively. China is expected to lead the government spending’s industry in the BRIC nations with a value of $4,639.0 billion in 2021, followed by Russia, Brazil, India with expected values of $1,339.2, $1,233.8 and $1,093.7 billion, respectively.
According to the market research report “Government Spending BRIC (Brazil, Russia, India, China) Industry Guide 2017“, China’s growth rate is decreasing moderately and price hikes are low. The over-confidence in government investment spending, consumption spending and transition of manufacturing economy are the major factors affecting China’s growth rate. However, these changes helped China to remain as a future foreign direct investment destination. Today, China is the world’s second-largest economy and any small changes in China’s economic growth rate may directly lead to global repercussions in the field of commodity exporters required for China’s production. The advanced economy and aged population in China are the major reasons that may also lead to decrease in the workforce and finally, may lead to low profits in the industrial sector with falling property prices.
The year 2017 is expected to witness a positive economic growth with modest recovery in commodity prices in the commodity rich BRICS countries. The Brazilian government has reduced the inflation rate to benefit the country’s economy. Brazil’s currency remains vulnerable to sudden capital outflows, and the economic progress proves disappointing than the country’s expected growth. Russia’s economic growth is expected to remain unresponsive with the impact of economic investment, low productivity and the country’s oil market. India’s growth rate is expected to continue and is a bright spot in the BRICS. The reformed tax structure and reduced barriers to foreign investment is a major attraction for foreign direct investment. There are more benefits with a large workforce in India and it is a major importer of commodities. The government spending in BRICS nations will see an enormous growth in the coming years with global growth prospects and without risks.
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