The Brics for 15% of the global economy

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The Brics now account for 15% of the global economy, more than half of the size of the US.

While many economists have grown used to the idea that the US economy – still the world's biggest – is the locomotive of the global economy, it is China, helped by a huge fiscal stimulus from Beijing last year, which is roaring ahead and helping to drag the rest of Asia and countries such as Germany, which exports a lot of machine tools to China, out of recession too. China is one of the key reasons the world did not experience an even worse 2009 than it actually did.

China is not alone; other Asian countries that are booming include Thailand, South Korea, Malaysia and Taiwan. But in terms of sheer size and importance, key emerging economies now include Brazil, Russia and India. Together with China, these are known as the Brics, a term coined by Jim O'Neill at Goldman Sachs early in the Noughties to denote their growing economic importance.

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China leads as Asia powers ahead

Asia’s rapid recovery from last year’s recession appeared to be confirmed on Monday by a slew of positive reports on industrial production that suggested economic growth is powering steadily ahead, led by China.

Even a worse-than-expected fourth quarter contraction in Singapore’s gross domestic product failed to dampen the optimistic mood, with economists writing off the setback in the city state as a consequence of pharmaceutical industry volatility.

Purchasing managers’ index reports for China, South Korea, Taiwan appeared to confirm that a robust and widespread recovery continues to be under way.