BRICS 2016—What Kind of Year Ahead?

In reports about the BRICS economies in 2016, the word “powerhouse” will probably not be found. Or, it will be preceded by the word “former” as in former-powerhouse. And the reason? Looks like the once-rising BRICS economies have stalled. Reports suggest in most cases there will be growth, but nothing to write headlines about.

Each of the five economies has its list of woes:

Brazil faces recession and Inflation

Russia sees the price of oil tumble toward $20 and has unpopular geopolitical commitments

India is one of the bright spots in 2016 with +7.5%GDP but lacks jobs

China‘s slowdown is a daily story although growth might hit 6.5%

South Africa suffers from falling commodity prices and an unpopular leader

This year BRICS will hold its summit in New Delhi. The date has not been set. As things now stand, there might not be much to cheer about when the representatives of all five economies get together. But you never know, fate has a way of stepping in, and “powerhouse” might again be a word you find in reading reports about the BRICS. For the optimist, anything is possible—even that.

Photo: Government ZA via flickr