The term BRIC is a shortened form of Brazil, Russia, India, and China. There is so much discussion about the BRIC countries that I thought we should take a look at what the BRIC countries mean in the investment world.

World economies have experienced many bumps and turmoil in the recent past. That is the main reason why the BRIC countries have gained importance in the eyes of investors around the world. Reducing domestic economic growth rates, reduced domestic demand, falling markets have created major threats to the survival of global investors and they are looking for new ways to invest their funds to ensure a good return on capital and also the safety of your capital.

BRIC definition:

Jim O’Neill of Goldman Sachs, Director of Global Economic Research, devised this BRIC in abbreviated form for Brazil, Russia, India and China. He first defined the BRIC countries in his report on emerging markets in 2001.

What makes BRIC different from other economies:

According to Jim O’Neill’s BRIC Report, the combined economic wealth of these four nations would be greater than the wealth of the richest nations by 2050. To date, these four countries together represent about 40% of the population. world and about 25% of global land. This optimistic scenario would offer better growth and security for investors.

* Brazil is the fifth most populous country in the world and the ninth highest GDP in the world.

* Russia ranks seventh in highest GDP.

* India is the second most populous country in the world and the fourth highest GDP rank.

* China is the most populous country in the world and the second highest GDP. The first place is the United States.

According to the Goldman Sach report, these four countries would have sustained growth over the next 40 years that would surpass the European countries in terms of economic growth.

We have seen many ups and downs in global economies due to the credit crunch and various bubbles created through improper business practices. Emerging markets are becoming a paradise for global investors due to their realistic and somewhat conservative growth policies.

The BRIC countries offer a high level of economic growth with a sustainable rate of economic activity that is estimated to last a few decades. Given the turbulent global market scenario, investors are drawn to BRIC nations due to the high rate of return on investment plus an anticipated capital appreciation.

As a Global Investor, one cannot ignore the growth potential of these countries and any investment in these countries would guarantee an improvement in the Portfolio’s performance. This has diverted the attention of most global investors from Western countries to BRIC nations. This global attention would once again help these countries to use their resources in the most optimal way and make these markets more competitive, thus ensuring greater transparency in market operations.

The knock-on effect of this would last at least 3-4 decades and these countries would become a focal point for global investors to invest.

In summary, I can say that as a global investor, you cannot ignore the importance of the BRIC countries and can further compare these countries with each other to find out which one is the best to invest in and optimize your investment portfolio.