Monday, June 4, 2012
Jim O'Neill - Do We Need To Worry About a BRIC Slowdown?
In late 2008 and early 2009, there were two reasons why some of us found it relatively easy to go against the prevailing view that a worrying global depression was around the corner. In fact, the inevitability of an aggressive fiscal stimulus in many countries, combined with the ongoing rise of the so-called BRIC economies meant that early 2009 was an excellent time to invest. Over three years later, the prevailing view is that all western economic policy levers are spent as the consequences of that fiscal stimulus have worn off, and in some cases reversed, under the pressure of bond markets (or at least the perception of pressure). Interestingly, there is also a creeping perception that the great BRIC economic surge has come to an end. I want to concentrate on this latter theme this week, although I will make reference to other topical issues as well.
Link to full article: http://www.goldmansachs.com/gsam/advisors/education/viewpoints_from_chairman/viewpoints-pdfs/Q2_2012/do-the-brics-need-replastering.pdf