By Chen Ning, Research Institute of Finance, DRC

Research report Issue No.175, 2017 (Total 5250) 2017-12-12

Abstract: Recently, the economic growth of the BRIC countries except China has slowed down with increased pressure imposed by currency devaluation and potential risks in the financial market. Accordingly these countries have adopted an easy monetary policy. There are both external and internal reasons for their policy adjustment. Externally, the factors include the anti-globalization and trade protectionism drive against the landscape of the global economic downturn performance, the shift of the monetary policy of the developed economies and the change of geopolitics. Internally, the reasons are due to the incomplete adjustment of economic structure, the weak manufacturing industry, the deficits in fiscal and current account, the heavy foreign debts and domestic political turmoil. In the near future, these countries will still face pressure resulting from capital outflow and currency devaluation as well as the aggravated economic downturn and inflation. As a result, they will continue to implement the easy monetary policy. In the long run, since these countries enjoy a solid basis of national strength, through reforming and optimizing their economic structure, further cooperation will ensure them a long-term development and a stabilized market performance. China needs to stick to the goal of long-term reform, give full play to its distinctive advantages, attach importance to personnel cultivation and enhance the mutually beneficial cooperation among the BRIC countries.

Key words: the four BRIC countries, economy, finance, enlightenments