Brazilian position on Regional Groups: Brics and Latin America
How the country is positioned in terms of economy and resources.
Goldman Sachs Group economist Jim O’Neill coined the BRIC acronym with the initials of these four large emerging economies (Brazil, Russia, India and China) in 2001. South Africa joined the group in April 2011.
With economic growth rates above the global average, the BRICS countries continue to be the main target for global investors looking to protect their assets in a scenario of instability in Europe and the U.S. These five countries account for close to 24% of the global economy.
Share of the countries’ GDP in the BRICs:
The deceleration of Latin American Real GDP in the last couple of years has a more cyclical nature than structural. Nevertheless, it was also affected by the recent slowdown in emerging countries.
Notwithstanding, the region is resilient to possible recession in developed countries (double-dip recession), thanks to strong economic fundamentals and a more concise domestic demand, through access to credit and the expansion of the workforce. However, inflation begins to expand dramatically in Venezuela and Argentina.
In Brazil, inflation has decreased and already reached the values within the objective established by the government. Brazil is Latin America’s main market, representing almost 50% of the territory and 39,9% (EIU, 2016) of the economy. According to The Economist, the country's participation in the regional economy was expected to maintain its pace, or to reduce its share by 1-2%, mainly due to the Mexican and Colombian rise in the period, making Brazil fall from the previous 37%, standing in 35% in 2015, but the results presented in 2016 made its participation increase to 39,9%.
Share of the Latin American countries in the regional GDP: