Asian Window

What is the outlook for Brazil, Russia, India and China? Nouriel Roubini in Forbes:

The summit between Brazil, Russia, India and China (the BRICs) in the Russian city of Yekaterinberg on June 16 marked the first such official meeting of a group largely confined to the pages of economic analysis. Signals from BRIC members suggesting they want to reduce their dollar assets and increase the use of domestic currencies in international trade have attracted much media attention and added to pressure on the dollar.

However, the inaugural summit focused primarily on forging common positions on financial regulatory reform and climate change, rather than foreign exchange rate management. However, this meeting remains more political than economic. While the contribution of these economies to global growth is set to increase over the next decade, their different interests suggest that forgoing common positions may be difficult.

The relatively more optimistic growth expectations for (most of) the BRIC countries has analysts speaking again of the “decoupling” theory, which holds that parts of Europe and Asia are detaching themselves from the U.S. economy. In particular, India and China are expected to be among the very few countries that will grow at or above 5% this year, contributing the bulk of global growth even as most of the advanced economies remain far in recessionary territory. More

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