BRICS countries to remain engines for global economy

The world economy will recover slowly in 2013 amid many complex and uncertain factors. BRICS countries (Brazil, Russia, India, China, and South Africa) are exerting more influence on the world economy, owing to their rapid economic growth and huge market potential.

Zhang Jianping, a research fellow at the Institute for International Economics Research under the National Development and Reform Commission, said in an interview on Jan. 3 that according to statistics from the governments of BRICS countries and certain international institutions, BRICS economies will improve in 2013, and grow much faster than some developed economies, forming a sharp contrast to certain developed economies that are on the brink of recession.

China

More powerful internal driving force

Zhang believes that China will maintain relatively rapid economic growth and continue to be the "locomotive" of world economy this year by further expanding domestic demand, transforming the economic growth model, and adjusting the economic structure. As contributes to the country's economic growth brought by consumption has exceeded those brought by investment, the Chinese economy will enjoy a more powerful internal driving force, and play a more stable and reliable role in promoting global economic development.

BRICS countries will be the key engines for global economic growth in 2013. They have gained more clout in the Group of Twenty, International Monetary Fund, World Bank, and other international institutions, and will play a more active role in global and regional economic governance.

BRICS countries are bound to exert more influence on the world economy in 2013.

Russia

Slashing budget to reduce financial risks

Russian economist Natalia Orlova believes that Russia needs to increase investment and improve productivity this year, and cannot just rely on consumption to boost economic growth.

Russia plans to slash its budget this year in order to reduce financial risks. It will make efforts to improve the competitiveness and production efficiency of domestic companies, and adjust its economic structure to enhance domestic development.

India

Keeping annual inflation rate between 6 and 7 percent

Indians are confident in their economy's gradual recovery this year after the implementation of a series of measures introduced by the central government and central bank for promoting economic development.

The Indian economy has shown signs of bottoming out lately. Its Manufacturing Purchasing Managers' Index (PMI) peaked five-month high in November last year. The inflation rate, which has a major impact on India's economic policy, will drop steadily in the next few months. India is likely to keep its annual inflation rate between 6 and 7 percent this year.

Brazil

Encouraging private companies to participate in port and airport construction

2013 will be a crucial year for Brazil's economic development. Brazilian economists generally believe that the Brazilian government will make moderate adjustments to the country's macroeconomic policies, and the central bank will introduce economic stimulus policies at the right time.

The Brazilian economy is also facing some uncertainty. Backward infrastructure remains a bottleneck to Brazil's economic development, and the lack of high-caliber talents has directly affected the production efficiency of companies, making them hesitant about increasing investment.

South Africa

Making efforts to improve social services and infrastructure

The South African government has imposed strict restrictions on state expenditure in 2013 due to the global economic downturn, saying that the expenditure must not rise more than 2.9 percent from last year.

South Africa's inflation rate is expected to drop to around 5.4 percent in 2013. Its main economic reform measures will include tax cuts, controlling budget deficit, and loosing foreign exchange controls. In addition, the South African government will make great efforts to improve social services and infrastructure. It will likely spend nearly 7.8 percent of gross domestic product on infrastructure.