## IMF Survey: BRICs Drive Global Economic Recovery

_IMF News, July 22, 2009_

## Source details

**Canonical URL:** [IMF Survey: BRICs Drive Global Economic Recovery](https://www.imf.org/en/news/articles/2015/09/28/04/53/sorea072209a)

## Other formats

- [Markdown version](/en/news/articles/2015/09/28/04/53/sorea072209a/index.md)
- [Structured JSON version](/en/news/articles/2015/09/28/04/53/sorea072209a/index.json)
- [Bundle manifest](/en/news/articles/2015/09/28/04/53/sorea072209a/bundle-manifest.json)

## Bibliographic details
- Published: July 22, 2009

---

### Shifting global balance and BRICs’ economic weight
- BRICs (Brazil, Russia, India, China) represent 40 percent of the world’s population.
- BRICs account for 25 percent of global GDP.
- BRICs leaders met in Yekaterinburg (Russia) on June 16; meetings included representatives of the Shanghai Cooperation Organization (SCO).
- The Economist noted emerging “decoupling” between emerging markets and advanced Western economies in its June 20 issue.

### Structural characteristics bolstering BRICs’ autonomy
- Exports are a relatively smaller share of GDP in some BRICs: in Brazil and India, exports are less than 15 percent of GDP.
- Presence of sizable domestic markets, industrial and technological diversification, major government infrastructure investment programs, and smoother financial liberalization post-1997-98 Asian crisis underpin greater autonomy.
- Trade among BRICs is surging and is often settled in local currencies rather than in dollars.

### Country-specific developments and indicators
- China:
  - Launched a program involving $600 billion of investment in the sectors of the real economy by November 2008.
  - Despite a 25 percent decline in exports, the Chinese economy in the first half of 2009 grew by 6 percent.
  - The Chinese automobile market has surpassed the U.S. market; three years earlier it was at 50 percent (relative to U.S. market size).
- India:
  - Recorded 4 percent growth.
  - Expanding beyond textiles and cheap electronics into shipbuilding, chemicals, steel, and communications.
- Russia:
  - Suffered greater fallout from plunging commodity prices.
- Brazil:
  - Economy undergoing consolidation.

### BRICs’ policy priorities and proposed reforms
- Four-pronged approach to the financial crisis:
  - Decisive regulation of global financial markets.
  - An orderly move away from the existing global monetary system based solely on the dollar.
  - Reorganization of the IMF, including a more important role for Special Drawing Rights as a transitional instrument in international reserve facilities.
  - Longer-term creation of a new multipolar monetary system based on a basket of currencies.

### Implications and prescriptions
- The BRICs are operating with a high degree of independence, consolidating relationships with one another rather than waiting for the United States to lead.
- Investment in major infrastructure projects, technological innovation, and environmentally conscious execution are identified as engines of growth and development, including for heavily indebted countries.
- The article suggests Europe should take note of the BRICs’ development strategy and potential implications for global economic governance.

*Source: IMF Survey: BRICs Drive Global Economic Recovery (July 22, 2009).*

---


## References

- [https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)
- [PRESS CENTER](http://presscenter.imf.org/)
- [What Readers Say](https://www.imf.org/en/news/search)
- [Recession loosens grip](https://www.imf.org/external/pubs/ft/survey/so/2009/RES070809A.htm)
- [IMF ramps up financing](https://www.imf.org/external/pubs/ft/survey/so/2009/INT070709A.htm)
- [G-20 reaffirms IMF role](https://www.imf.org/external/pubs/ft/survey/so/2009/NEW040309A.htm)
- [Crossroads at G-20 summit](https://www.imf.org/external/pubs/ft/survey/so/2009/POL032709A.htm)
- [IMF to track crisis response](https://www.imf.org/external/pubs/ft/survey/so/2009/NEW031409A.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/28/04/53/sorea072209a_