Investors turning to the still-expanding BRIC economies of Brazil, Russia, India and China should be aware that these countries remain exposed to risks — including internal conflict and the impact of climate change — which could undermine their potential for attractive returns, a new report by global analysts Maplecroft warned on Monday.
The BRICs, which saw enormous growth over the past years, continue to see their economies expanding at a time when developed economies are contracting.
“With present hopes for mitigating the global impact of poor economic growth forecasts in key Western economies resting with the BRICs economies, and in particular China, investors and business operating in these geographies need to be aware of their limited resilience to global risks,” Maplecroft said in its Global Risks 2012 report published on Monday.
The International Monetary Fund cut its forecast for 2012 global growth in January, expressing concern that the European debt crisis would send advanced economies back into recession.
Meanwhile, growth in developing economies would slow from a high pace, it said.
Maplecroft said that the economies of Brazil, Russia, India and China were increasingly important for global growth as many of the Western economies faltered in the face of debt crises and stagnation.Page 1 of 3 | Next Page