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BRICS members become new growth engines: IMF report

0 CommentsPrint E-mail Xinhua, April 16, 2011
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BRICS, a mechanism that groups the world's five major emerging economies, has become a new growth driver for low-income countries (LICs), according to a report released by the International Monetary Fund (IMF) on Friday.

"While industrial countries remain LICs' dominant development partners, LIC-BRICS ties have increased so rapidly over the past decade that BRICS have become new growth drivers for LICs," noted "New Growth Drivers for Low-Income Countries -- the Role of BRICS, " a report released during the IMF and World Bank spring meetings in Washington, D.C..

Foreign direct investment (FDI) and development financing from BRICS countries, namely Brazil, Russia, India, China and South Africa, to LICs "are making a significant impact in some key areas, " said the report.

Trade between LICs -- mostly in Africa -- and BRICS is already close to half of the value of combined trade with the European Union and the United States, and larger than with other emerging market economies, the report pointed out.

Beyond the increased flows of goods and capital, BRICS have brought new dynamics in LICs' economic relations with the rest of the world, the report added.

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