BRICS to Strengthen Ties, Establish Development Bank
In a recent interview, Vice-Minister of Finance Zhu Guangyao noted that the BRICS Development Bank, which is currently undergoing a feasibility study, was part of the ongoing efforts to strengthen economic cooperation between BRICS member countries. He also mentioned that the global economy will continue to face uncertainties in 2013 and he anticipated that there would be less participation in global trade by European banks. Moreover, he noted that BRICS countries are obligated to fight against trade protectionism and thereby ‘unleash their potential’.
Trade between BRICS countries was in excess of $320 billion in 2011, representing a six-fold increase in the past decade. China’s trade value with the other four member countries amounted to $280 billion in 2011 and had already exceeded $250 billion in the first ten months of 2012, with the country’s overseas investment in Brazil, India, Russia and South Africa reaching $23 billion.
Meanwhile the Conference Board in the United States has warned that the BRICS boom is over, predicting that China’s double-digit expansion rates will soon be a things of the past, with growth falling to 6.9 percent in 2013, dropping further to 5.5 percent from 2014 through to 2018, before falling even further to 3.7 percent from 2019 to 2025, citing the population aging crisis China faces as one of the reasons behind its dire predictions.