In fact, the world has nearly 30 billion people, nearly half the world’s population does not like the way most people are talking about really affected by the crisis. – Goldman Sachs Asset Management Chairman Jim O’Neill.

Is considered the “Great Depression” the most serious global economic crisis since the outbreak of the global economy is undergoing a structural transformation of the “big reshuffle” – economic growth potential will continue to shift from developed to emerging economies. With economic growth to beat and capital market performance, “BRIC” has been increasingly rising in the global arena and become unstoppable emerging market leader.

As of October 22 this year, Morgan Stanley Capital International (MSCI) “BRIC” index has bottomed in 2008 rose 211 points to 355 points over the same period increased far more than the S & P 500 Index.

The backbone of global economic growth

“BRIC”- Brazil, Russia, India and China – a concept pioneered by the O’Neill, and quickly became the new darling of the global academic community and the investment community.

Goldman Sachs in December 2009 is expected to report, “BRIC” economies of scale in 2032 to catch up with the sum of the Group of Seven (G7), the line earlier than the full 7 years ahead of schedule.

Indeed, the rapidly changing global economic landscape: The four countries account for the proportion of the world economy has been in the past 9 years, rising from 8.3% to 16.4%. According to Goldman Sachs economists expect the “BRIC” contribution to global GDP growth rate will be before the year 2023 more than other countries in the world. And in 2027 China will become the world’s largest economy.

The pattern of change is behind this crisis further highlighted the economic growth, “difference”: According to the International Monetary Fund (IMF) latest projections, emerging economies economic growth in 2010 will reach 6.8%, much higher than 2.6% of developed economies.

Although many of the “BRIC” emerging competition are out, but Goldman Sachs economists still insist that the “BRIC” will be the backbone of global economic growth led. The bank announced in September of this year, the report predicted “Brics” 2011 gross domestic product (GDP) growth rate will be 8.8%, higher than the current value of other institutions is widely expected to 7.9%.

Expansion of the middle class consumer opportunities

With O’Neill’s words, for the “BRIC” capital market the boat “latecomer” is concerned, in fact, another opportunity is just beginning – the “BRIC” consumers.

“China has surpassed the U.S. as the world’s largest auto market, but sales are still only one-fifth of my expectations.” O’Neill said.

And this trend will “expand the middle class,” which is driven by accelerated development.

Goldman Sachs economists believe that with economic development, the “BRIC” subsistence level of consumption from the stage to the initial stage of industrialization, and then enter the consumer-led economic growth. And with rising levels of wealth and population of the “BRIC” would greatly benefit the middle class (mean annual income in 6000 to 30,000 U.S. dollars between the groups) of the accelerated expansion.

Although today’s developed economies, there is still a trace of growth potential, but the “BRICs” the consumer class is in the initial stage of rapid expansion has brought a huge consumption power of free people, and thus boost economic growth in global consumption and .

The driving force behind a “very attractive demographic and human capital.” Goldman Sachs predicts that India may be in the coming decades the global labor market, the highest growth rate of contribution. India’s labor force may be 1.1 billion people by 2020, the population in the next 20 years, this factor alone would be the country’s annual contribution to GDP growth of about 4 percentage points, not only because the labor force increases, and as urbanization and for the age structure of the resulting higher productivity.

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