Emerging Markets and the BRIC countries seem to come in and out of popularity in recent years. The acronym BRIC has become synonymous with emerging markets. As the economy suffered in 2008 and 2009 many had hoped that growth in BRIC-like countries would help keep the world from all falling at the same time. We soon found out that no place was spared.
Within the set of Global 5000 companies — the largest firms in the world — approximately 12% of the total revenue of $43 trillion comes from those companies in the BRIC countries. The impressive thing is the growth rate of these companies in BRIC compared to the overall growth rate of all companies in The Global 5000. Consider the following growth rates.
BRIC vs Total Global 5000
- 2007 29% vs 13%
- 2008 26% vs 10%
- 2009 0.5% vs -9%
- 2010 29% vs 11%
In essence, the growth rate of the BRIC companies is twice that of all the largest companies overall. And it doesn’t seem to be slowing down. Some of the recent press regarding the proposed merge of Glencore and Xstrata illustrate the growth of key companies and industries in BRIC countries. These two Swiss based companies are involved in mining operations throughout the world. These mining operations and the growth of the minerals and metal operations are helping fuel much of the growth of the commodities needed in the BRIC and emerging market countries.