China needs slower growth to keep its economy up and running, economist Jim O’Neill — known for coining the term BRIC to group Brazil, Russia, India and China — said, the Hong Kong Economic Journal reported Tuesday.
The BRIC countries should no longer be considered to be on the same footing, O’Neill was quoted as saying in an interview with Nikkei Shimbun, the leading Japanese financial daily.
Instead he now groups the emerging markets into three categories, of which China is the leader in a category of its own.
O’Neill first came up with the BRIC concept in 2001.
However, he said, the 2008 financial crisis forced China to make progress in reforms that have resulted in its gigantic influence on the global economy.
The United States and China will switch their present status as the world’s No. 1 and No. 2 economies in 10 years, given the low saving rates in the world’s largest economy, O’Neill said.
He sees China contributing trillions of US dollars of gross domestic product to the world, even at a growth rate of 7 percent.
Russia, Brazil and other South American countries and African countries, all of which are rich in resources, are in the second category and will benefit from surges in international commodity prices.
The third category includes such countries as India, Indonesia and Mexico, which are pushing forth vigorous reforms, O’Neill said.
Translation by Vey Wong
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