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BRICS has lost relevance as economic grouping: S&P
30 Oct '19
1 min read
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The Brazil, Russia, India, China and South Africa (BRICS) economic grouping has lost its relevance due to diverging long-term economic trajectory, according to Standard & Poor’s (S&P), which recently said the better-than-projected economic performance of China and India over the past two decades contrasts with disappointing results in the other three.
While China and India have maintained stable pro-growth economic policies and have gained a larger role in the world economy, the comparatively poor long-term performance of the other three countries has diminished their global economic role, the global rating agency said.
All the five have very low foreign currency borrowing in either public or private sectors. Brazil and India both have the weakest fiscal and debt profile, followed by South Africa. Russia’s fiscal and debt profile is slightly better than that of China, according to a report in an Indian business daily.
The rating agency maintains a favourable or neutral assessment of monetary flexibility for all the five countries.
While China and India have maintained stable pro-growth economic policies and have gained a larger role in the world economy, the comparatively poor long-term performance of the other three countries has diminished their global economic role, the global rating agency said.
All the five have very low foreign currency borrowing in either public or private sectors. Brazil and India both have the weakest fiscal and debt profile, followed by South Africa. Russia’s fiscal and debt profile is slightly better than that of China, according to a report in an Indian business daily.
The rating agency maintains a favourable or neutral assessment of monetary flexibility for all the five countries.
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