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Brics growth set to slow: LGIM
Growth in Brazil, Russia, India and China is set to slow, but consumption will rise over the next decade, Legal & General Investment Managements’s Brian Coulton has said.
Speaking at a briefing today (1 February), Mr Coulton, emerging markets strategist for LGIM, said although growth in these economies will fall over the next decade, it will be strong compared to the West and driven by consumption, rather than production.
He said: “Looking at demographic trends, growth in the working age population will slow sharply in China, and actually fall in Russia.
“The big change over the next 10 years will be a sharp decline in investment growth. In the last decade Chinese and Indian consumers have foregone a rising share of income to fund growth but this pattern is likely to be reversed.
“If the last decade was the story of Brics as producers, the next decade will be the story of Brics as consumers. The effects will be felt across the globe.”
He added that as the global economy becomes more inter-linked, emerging market trends will have a greater effect on world markets, driven largely by the Bric countries and India and China in particular.
