BRICS countries to remain engines for global economic growth (2)

India

Keeping annual inflation rate between 6 and 7 percent

Indians are confident in their economy’s gradual recovery this year after the implementation of a series of measures introduced by the central government and central bank for promoting economic development.

The Indian economy has shown signs of bottoming out lately. Its Manufacturing Purchasing Managers’ Index (PMI) peaked five-month high in November last year. The inflation rate, which has a major impact on India’s economic policy, will drop steadily in the next few months. India is likely to keep its annual inflation rate between 6 and 7 percent this year.

Brazil

Encouraging private companies to participate in port and airport construction

2013 will be a crucial year for Brazil’s economic development. Brazilian economists generally believe that the Brazilian government will make moderate adjustments to the country’s macroeconomic policies, and the central bank will introduce economic stimulus policies at the right time.

The Brazilian economy is also facing some uncertainty. Backward infrastructure remains a bottleneck to Brazil’s economic development, and the lack of high-caliber talents has directly affected the production efficiency of companies, making them hesitant about increasing investment.

South Africa

Making efforts to improve social services and infrastructure

The South African government has imposed strict restrictions on state expenditure in 2013 due to the global economic downturn, saying that the expenditure must not rise more than 2.9 percent from last year.

South Africa’s inflation rate is expected to drop to around 5.4 percent in 2013. Its main economic reform measures will include tax cuts, controlling budget deficit, and loosing foreign exchange controls. In addition, the South African government will make great efforts to improve social services and infrastructure. It will likely spend nearly 7.8 percent of gross domestic product on infrastructure.

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