Looks like India’s been sneaking away from the BRICS playground and cozying up to the U.S. for a while now. Guess who called it? Yep, everyone with two eyes and a newspaper. Economic trends are flashing signs all over the place, with both Uncle Sam and India pumping up the momentum.
And yep, that could mean 2024 is going to hustle harder than last year, says the Financial Times.
A Quick Peek at the Numbers
So what’s up with the numbers? The U.S. economy’s got its groove back, hitting highs we haven’t seen since the mid-2022 vibes. The Indian economy isn’t lagging either, keeping pace with a similar jolt, according to the Brookings-FT Tracking Index for the Global Economic Recovery—yeah, that’s TIGER for the acronym lovers.
As the big brains head to Washington for the IMF and World Bank’s spring fling, they’re lugging a huge suitcase of issues. Crap growth predictions for the next decade and the fun mix of inflation and high debt.
Let’s not forget the spice mix thrown in by the geopolitical shenanigans, with the Middle East serving hot drama after Iran decided to launch party favors at Israel.
And what’s the IMF’s fortune cookie say? Expect some firmer growth in their next forecast, aiming a tad higher than the “meh” 3.1% global GDP growth pegged for this year.
Economic Power Plays and BRICS on a Tightrope
Here’s a thing. The U.S. isn’t just rolling along; it’s blasting through expectations with a job market hotter than a summer in Phoenix and stock prices ballooning up like… well, balloons. Eswar Prasad from the Brookings Institution is all about giving props to the U.S. for driving what he calls a modest bump in this year’s global growth outlook. Meanwhile, Europe’s biggies, like Germany and the UK, are just flirting with recession, not committing yet.
Let’s circle back to the BRICS—Brazil, Russia, India, China, and South Africa, plus the newbies like Egypt and the UAE. Founded back in the day by a smart Goldman Sachs guy named Jim O’Neill, BRICS was supposed to be the economic Avengers.
Fast forward, and it’s mostly China pulling the economic weight, while the rest kinda tag along. Trade within BRICS? Mostly flatlined except for India, which recently decided to sprint.
And oh boy, China’s not just a team player. It’s the coach, referee, and league commissioner all rolled into one, pushing hard on the foreign policy front and pretty much steering the BRICS ship.
The U.N. dance? China leads, BRICS follows, except for that one awkward samba step with Brazil over Ukraine, which kinda aligned back to China’s tune anyway.
Uh, where’s Putin?
See now, China’s pitching this BRICS+ model, aiming to give more voices to the developing world—a real United Nations, if you will. But with the added mix of economies from Saudi Arabia to Iran, we’ve got a stew going that’s rich in diversity but maybe tricky to balance.
Will this expanded clubhouse play nice, or will the economic and political lines blur even more?
And also, where does this U.S.-India bromance leave BRICS? Right in the middle of a super awkward love triangle, where old ties get tested and new allegiances might redraw the world map. Strap in, guys! It’s gonna be a bumpy economic ride!
