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Goldman Sach’s chief economist Jim O’Neill came up with the concept of BRICS in a 2001 research paper. The acronym stands for Brazil, Russia, India, and China, to which South Africa was added more recently. Clearly, these five fast growing countries share a lot of economic, financial, and institutional similarities!
False
The “Paris Club” is a forum of Debt restructuring negotiations between developing countries and OECD developed country governments
True
Economic liberalization leads to rising trade openness ratio (trade flows/GDP) in most developing countries. In addition, trade liberalization coupled with financial deregulation leads to socio-economic development and shrinking wealth gap
False
The share of developing countries in global GDP is gradually rising and today reaches 58% compared to only nearly 42% for so-called 38 “advanced developed countries” of the OECD, on a PPP basis
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Socio-political volatility risk and Global income inequality: After declining in the first half of the 20th century, income inequality made a comeback since the mid-1980s in many developed countries. The share of top 1 percent in income distribution reaches nearly 20% currently
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Coface is both an insurer and a country risk analysis company that provides ratings and rankings
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Rating agencies such as Moody’s, Fitch, Coface, INCRA, Dagong, and S&P’s are reliable sources of early warning of mounting country risk volatility!
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Is China’s soft economic landing working in 2023? Since 2014, China’s economic and monetary authories initiated a rebalancing strategy of the country’s economic growth driving engines, by boosting private consumption with lending surge, hence relying less on fixed investment and export revenues. Yet much of the riskiest credit, incuding loans to local governments, property developers and coal miners, has migrated to the shadow banking system, increasing the risk of a looming financial crisis
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China’s growth is projected to slow in 2024, about to reach 4,5% at most, according to a number of forecasts (Goldman Sachs, IMF, WB, Brookings, OECD). Meanwhile, India’s growth is to reach around 6%!
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What Bouchet calls “Hyperfinance” is the byproduct of deregulation and globalization of the financial system since the 1980s. The “too big to fail” systemic risk stems from the rising share of banking assets in GDP, well above 200% in most developed and developing countries, including the EU, China and in Japan
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