BRICS economies should work towards seizing the opportunities that might emerge amid the crisis by planning for and working towards a bright post-pandemic future according to a study by member central banks published by the Reserve Bank of India.
Key points of the study:
- There has been a difference in the pace of development among the BRICS countries.
- China has made a speedy recovery due to its ability to control epidemic infections. While India and Brazil are picking up the pace of economic growth.
- Russia and South Africa are yet to achieve their pre-pandemic levels of economic activity.
- The BRICS economies had displayed a strong position of their foreign exchange reserves during the pandemic, especially in the second half of 2020.
- The balance of payments position of BRICS countries appears to be flexible depending on the strength of currencies, trend of external debt commitments and position of reserves.
- The study has highlighted the uncertainty arising out of COVID-19, impact of global financial conditions and continuing economic and structural changes arising out of the crisis as factors of concern in BRICS countries.
- The study highlighted the uncertainty arising out of COVID-19, the impact of global financial conditions and the continuing economic and structural changes arising out of the crisis as “factors of concern in BRICS countries”.
- Focus on infrastructure development, ease of doing business, skill development and job creation and increasing the speed and efficacy of vaccination
About BRICS countries:
BRICS is an informal grouping of countries. This includes Brazil, Russia, India, China and South Africa.
BRICS countries include:
- 41 percent of the world’s population.
- 24 percent of the world’s GDP.
- More than 16% share in world trade.
BRICS countries discussed important issues under three pillars –
- Politics and security,
- Economic and financial
- Cultural and people-to-people exchange.
Two important institutes of BRICS:
- New Development Bank – for implementing infrastructure and renewable energy projects in BRICS countries
- The BRICS Contingent Reserve Arrangement(CRA) – A financial stability mechanism for countries affected by a crisis in their balance of payments.
Source – The Hindu