Brics nations play key role in global economy: OECD

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Paris, Aug 1 (IANS) The Brics countries will continue to play a key role in the global economy although they reported slower growth in recent years, said an expert with the Paris-based Organisation for Economic Cooperation and Development (OECD).

Federico Bonaglia, deputy director of OECD Development Centre, told Xinhua news agency that slowdown in the growth of the Brics economies will not have a significant impact on their joint share in the world economy.

“China and India continue to maintain a very sustained growth, a situation that both Russia and Brazil are expected to reach next year,” Bonaglia said.

Latest OECD economic outlook expected a return to growth in Brazil and Russia. Meanwhile, China and India are projected to expand their GDP by more than 6 per cent.

He said India is the only Brics country that has not experienced a slowdown in the past few years, with a growth rate of around 8 per cent in 2015 and 7.7 per cent projected for 2018.

Brazil and Russia are poised for economic recovery, Bonaglia said.

The Brazilian economy contracted 4 per cent in 2015 and 3.6 per cent in 2016. “The good news is that (it) is expected to return to a positive growth in 2017 and reach a growth rate between 1.5 and 1.6 per cent in 2018,” he estimated.

Russia, which has experienced “a very complicated situation”, will be able to shake off recession in 2017 and reach a growth rate around 1.4 per cent, he said.

However, the outlook for South Africa remains clouded, said the expert, who put the country’s growth rate for 2017-2018 at 1 per cent.

Bonaglia told Xinhua that Brics economies play a very important role by injecting dynamism into the world economy.

“In 2000, the Brics represented 40 per cent of the GDP. In 2010, they represented over 50 per cent and in 2015 they reached 54.7 per cent of world GDP,” he recalled.

However, despite this strong progress, the Brics face challenges in terms of productivity growth and innovation, the OECD expert noted.

–IANS

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