BRICs economies – Brazil, Russia, India and China are becoming large economic giants and it could be assumed, observing the current GDP, currency movements and per capita income that these powers could compete the G6 countries (France, Germany, Italy, Japan, the United Kingdom, and the United States) in upcoming years till 2050.
From the latest models, it can be seen that the results are alarming because if BRICs would continue prospering like this in year 2025 they could stand on half the size of G6 whereas at this time they are less than 15% of G6. From higher real growth and with balance of currency from BRICs, the two-third of the increase in US dollar GDP should come.
Over a period, the GDP of BRICs would alter steadily in comparison to G6 and in the first 30 years it could be remarkable. But if we examine these countries individually, BRICs are poorer on average as compare to G6 but Russia could be taken as an exception. Whereas, the China has per capita income what developed countries have.
BRICs undoubtedly have been progressing every day and if the progress continues the BRICs will become leading force in generating spending growth. Via help of statics and graphs China could surpass Germany in next four years in terms of US dollar and Japan till 2015 and US till year 2039. Economy of India could be bigger than US ad China in next 30 years. In the same manner, Russia could overhaul UK, France, Germany and Italy.
In spite of much faster growth of GDP of BRICs, they could not individually compete with the economy of the G6 countries but Russia can be taken as exception and can compete with poorer per capita income country of G6.
Demography plays a key role in the development and per capita income of the country. In developed courtiers the trend of not working in developed countries.
As early as 2009, the spending of US Dollar from BRICs could increase annually from the spending of G6 countries and it would be expected to double in year 2025 and four times larger in 2050.
Growth slows down as the development occur valuing exchange rates. The gap between BRICs and G6 lessens with the rise of currency and rapid growth of US dollar per capita income.
It is also seen that the influence of BRICs in investment lane could rise sharply and this flow of capital would be in favor of BRICs and would endorse the major currency shifts. As higher incomes translate into higher spending, growth in such countries is expected to take place. For a variety of commodities, it could serve as a determinant between demand and supply.
The additional shifts in spending could provide important chances to global companies with the advance countries becoming lessening part of the worlds’ economy. The perfect strategic choice is to invest in the right markets and get involved with them or the emerging markets t be benefited.
In 2050, it is expected that the list of top ten world largest economies will be quite dissimilar to present situation. The countries that are larger economies according to GDP growth might not be the richest countries examining their per capita income and it would make choices more difficult for firms.