BRIC Middle Classes Driving Economy

BRIC Middle Class

No matter how long it takes to emerge from the economic recession the world is now in, there's no doubt after things get better, that over the next couple of decades BRIC middle classes will drive the global economics and prosperity for the next several decades.

The American consumer has been the chief mover of the global economy for a long time, but that is about to change, and the recession and the emerging and growing middle classes in Brazil, Russia, India and China will lead the way going forward; especially China and India.

Once things turn around we'll see these middle class people desire and buy up many products and services, and there'll be unprecedented growth for some time; although there will always be temporary slowdowns in general, but the overall curve should go up for the most part in these nations.

According to McKinsey & Co., the urban Chinese middel class will spend close to $2.3 trillion a year by 2025, while India's middle class should grow from 5 percent today to over 40 percent of the nation over the next 20 years. Brazil and Russia will also contribute significantly to this growth, marking an unprecedented opportunity at prosperity and growth.

The majority of emerging markets avoided the worst of the economic crisis, which originated in the mortgage-backed bonds that the U.S. sold to the developed world. Their economies have declined far less dramatically, and contrary to the U.S. or Europe, many are projected to grow this year. So it’s no surprise that consumers in emerging-market countries want more of the products those in the West take for granted.

Those companies and individuals investing in the BRICs should enjoy success when they focus on sectors like banking, finance, real estate, retail, consumer goods, commodities and entertainment.

This isn't a short-term strategy to employ when engaging the BRICs, but rather those with an long-term outlook should do very well by investing in BRIC nations and economies.

BRIC Middle Class