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BRICS has lost relevance as economic grouping, says Standard & Poor's

The better-than-projected economic performance of China and India over the past two decades contrasts with disappointing results in Brazil, Russia, and South Africa

Abhijit Lele 

Osaka: Prime Minister Narendra Modi with the leaders of BRICS nations, in Osaka, Japan, Friday, June 28, 2019. (PIB/PTI Photo)
Osaka: Prime Minister Narendra Modi with the leaders of BRICS nations, in Osaka, Japan, Friday, June 28, 2019. (PIB/PTI Photo)

  • Global rating agency Standard & Poor’s (S&P) has said that Brazil, Russia, India, China, and South Africa (BRICS) as economic grouping has lost relevance due to diverging long-term economic trajectory
  • The better-than-projected economic performance of China and India over the past two decades contrasts with disappointing results in Brazil, Russia, and South Africa
  • China and India have maintained stable pro-growth economic policies and have gained a larger role in the world economy
  • In contrast, the comparatively poor long-term performance of the other three countries has diminished their global economic role
  • 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
  • The rating agency maintains a favourable or neutral assessment of monetary flexibility for all the five countrie
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First Published: Mon, October 28 2019. 21:48 IST
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