A TOUGH ENCOUNTER TO BRICS global markets from the opening of the 2013 show had not impressed more

as expected.few growth signs headed from this quarter.It is the habit of the investors and markets experts expecting a greater picture from emerging markets like India,Brazil,China etc.,Which in their eyes contribute traditional sources of investment and profitability.The most reputed and out-spoken emerging market is BRICS.Extremely populated, extensive natural resources,a fully loaded magazine of both skilled and menial labour.These countries appear to be, at least to the superficially-informed investor, almost surefire sources of high returns.But not all emerging economies perform well and have a good immunity against global slowdowns. India, predictions by various experts on India's economy looks promising as experts note that the growth rate of India is less reliant on international factors than is the case for other Asian countries. Weaker consumption and investment demand as a result of persistent inflation, high nominal interest rates, large fiscal deficits and political gridlock will remain all issues that will continue curbing growth this year.Asia's 3 largest economy also faces many internal economic issues. As i have mentioned earlier in my articles that India also faces many structural issues,and this can be overcome by increasing focus on infrastructure projects, increasing interaction with neighboring nations.It also needs attention on current account deficit. Govt have initiated many combat reforms to retaliate inflation like decided to issue inflation index bonds etc.,the inflation rate was 6.62 in jan-feb 2013 and increased to 7.28 in feb-mar giving a south turn it had a downfall in mar-apr to 5.96 and continuing this trend it was nearly 4.89 this may. The direction of change is not surprising in itself. Inflation was greatly expected to drop in the first six months of 2013. There are several reasons why this should be so: weak demand, softer commodity prices and the expectation of a good monsoon. What has come as a pleasant surprise is the pace at which inflation is declining. The are more expected performance from India for this financial year. Brazil has become a pool for hedge funds investors and small investors as they see some affirmative growth in their markets.It all makes sense as the recent population boom shows a witness for manpower increase (in 2011, the total population in Brazil was 196.7 million, up from 72.7 million in 1960, representing a growth of 170 percent during the last 50 years) this was indirectly a reason to boost the industrial complex in brazil. And as expected Brazil being the host nation for the 2014 FIFA games and 2016 summer Olympics which makes Brazil a must go and a must watch nation for all investors. But these seems to be just a single step for market growth, they can bring a result of not enough. Speaking on the GDP rates of Brazil it is a south turn arrow of 7.5% in 2010 , 2.8% in

2011 and 1.5% in 2012.Even more dire, the worlds 6th largest economy is set to face electricity rations in 2013, in part due to a drought last year that is threatening electricity generation at Brazils big hydro-power plants, a reality that will hamper production and profit this year.Also experts say that the recent bloom of the economy is mainly because of its favorable weather from 2000-2010. Their growth also is impacted by global markets or the external factors. By citing some articles from forbes and BI it is also clear that Brazil government have failed to take reforms for a sustainable growth.Many economists say that Inflation will be a nightmare for Brazil this year. Russia, working on the political lines and economic lines for the past years Russia still stands as one of the largest energy exporter nation(oil accounts 70% of exports) .some say russia will become a superpower than existing within 2030. In contrary to this school thinkers from world bank argues that Russia will face a downturn growth because of decreasing domestic demand , inflation and a sluggish external demand in 2013.Being the 3rd largest partner of EU the recent turmoil may show its signs this year, as they escaped those clutches in 2012.It is also said that Russia is to face a demographic crisis as their population is declining while comparing levels of 1992(2012 it is 143 mn and decreasing at a rate of 1mn/year)as 1992 it was 148mn. While Russia tries growing in 2013, its ties to the EuroZone, demographic realities, and reliance upon commodities will keep it both unstable and unpredictable an investment target. South Africa, While much of the world staggered in the wake of the global financial meltdown, South Africa has managed to stay on its feet largely due to its prudent fiscal and monetary policies. The country is politically stable and has a well capitalized banking system, abundant natural resources, well developed regulatory systems as well as research and development capabilities, and an established manufacturing base. Ranked by the World Bank as an upper middle-income country, South Africa is the largest economy in Africa and it remains rich with promise. It was admitted to the BRIC group of countries of Brazil, Russia, India and China (known as BRICS) in 2011.As the National Treasury is at pains to point out, development is not just the pursuit of growth it is also about creating a more equitable future. The South African government is determined to address its key challenges through the economic integration of its previously disadvantaged majority.Unemployment, at a rate of 25%, remains the most challenging of South Africas hurdles: it is at the top of government priorities and at the heart of its economic policies.educational outcomes are poor on average and extremely uneven, which aggravates the excess supply of unskilled labour as well as worsening income inequality. In addition, the prospects for sustained improvements in well-being are compromised by

environmental challenges, notably climate change and water stress. South Africa needs to achieve rapid, inclusive economic growth while at the same time making the transition to a low-carbon economy and managing effectively the countrys scarce water resources. Tackling the key problems effectively will require continued skilful management of macroeconomic policies, but above all improved implementation of structural policies, with education being a particularly critical area.

China , there are many chances for china to make 2013 favor to them, surely china is a miracle story.2013 will prove both a pivotal and difficult year for the emerging nation, as political and economic instabilities come to the fore. In particular, look to the countrys debt load to weigh down official growth numbers, as news has recently emerged that Chinese banks have rolled over at least three-quarters of all loans to local governments that were due to mature by the end of 2012.Furthermore, due in a significant part to the fact that within the past few years China accelerated administrative approvals for infrastructure investment, notably for building subways, in the middle of last year, in a bid to boost economic growth, these in-process projects are set to begin dampening growth as early as this year. And while economists predict 8% growth for the nation this year, much of that will be tempered by the EuroCrisis, now in its 4th year, as the region starts grappling with the possibility of a Greek and/or Spanish exit. In short, 2013 marks the year that China starts dealing with the delayed price tag of its unimpeded growth of the last decade, much to the detriment of the worlds investors.There are, of course, other risk factors now undermining the countrys economic growth. Among them are an eroding environment, unfavorable demographic trends, and persistent internal discontent. North Asia looks like the worlds most volatile region at the moment. An assertive China is working to push America aside, grab territory from an arc of nations from India in the south to South Korea in the north, and close off the South China Sea so that it becomes an internal Chinese lake.

references: business insider magazine Forbes magazine http://www.federalreserve.gov/pubs/ifdp/2013/1072/ifdp1072.pdf The Economist magazine http://www.marketwatch.com/story/china-wants-to-speed-up-infrastructure-funds-2013-01-15

economic survey of India official website of south Africa Facing the Challenges of the Global Economy (IMF research paper) Economic Survey of South Africa