The global financial crisis, had hit BRICS (Brazil, Russia, India, China, South Africa) economies, but these countries are likely to rebound, with India likely to clock “steady” GDP growth in next three years.
According to leaders of these economies who were speaking at a session at the 44th World Economic Forum Annual Meeting here, the BRICS economies would rebound over the next few years, despite having been hit to varying degrees by fallout from the global financial crisis. “India’s growth declined because of the adverse external environment and due to some decisions we took,” finance minister P Chidambaram said. He, however, expressed confidence that the country will grow at 6 per cent this year, 7 per cent in 2015 and 8 per cent in 2016.
As per Liu Mingkang, distinguished fellow, Fung Global Institute, Hong Kong, “China’s economy … is expected to maintain its momentum on a more sustainable course at a rate of 6 per cent to 7 per cent through to 2020. According to South Africa’s finance minister Pravin Gordhan, after registering significant growth in the past two decades, the country is now headed towards “the new normal.”
Echoing similar sentiments, Guido Mantega, minister of finance of Brazil, said the country will not return to its pre-crisis growth levels soon, but it is already consolidating the reforms introduced over the past decade that have raised the incomes of the poorest people in society.