Benaulim (India) – Amid fears of threats posed by protectionism, the BRICS countries have vowed to deepen economic engagement, tackle the global economic slowdown, and combat cross border terrorism.
The leaders of the five emerging economies of Brazil, Russia, India, China and South Africa wrapped up a summit Sunday in Goa, western India, to address economic challenges.
The five BRICS countries represent over 3.6 billion people, or half of the world’S population; all five members are in the top 25 of the world by population, and four are in the top 10.
The five nations have a combined nominal GDP of U.S. $16.6 trillion, equivalent to approximately 22% of the gross world product.
China’s president Xi Jinping said the potential and the inherent strength of the five-nation grouping of emerging economies continue to be unchanged and they continue to remain positive from a long-term perspective.
Xi warned that “some countries are getting more inward-looking in their policies, protectionism is rising and the forces against globalization are posing an emerging risk.”
He urged the businesses to “seize” all the available opportunities, increase their investments and undertake actions which will boost the confidence of the markets, the public and as well as the international community.
The comments came at a time when the export-led growth model of the Chinese economy has been hit with lingering slowdown due to the crisis in the global economy.
Earlier this month, the International Monetary Fund cut its forecast for world economic growth in 2016, with Brazil, South Africa and Russia receiving some of the sharpest downgrades.
The BRICS economies have been hit by falling global demand and lower commodity prices while some have faced corruption scandals.
Brazil and Russia are both in recession, and Brazil on some counts is suffering its worst downturn since the 1930s.
South Africa narrowly avoided a recession last month while China is going through its slowest economic growth in 25 years.
However, India recorded the fastest-growing country in the world at 7.5 percent annually.
On the other hand, the BRICS nations agreed that the New Development Bank, which the group set up in 2014, should continue to focus on infrastructure, technology and renewable energy sectors.
The leaders said that “in order to further bridge the gap in the global financial architecture, we agreed to fast track the setting up of a BRICS credit rating agency.”