The Chart of the Week is a Visual Capitalist feature on Fridays.
The market has talked a lot about the growth expectations of MINT or BRICS countries. These are groups of countries that are considered to be emerging markets and thus they were well-suited to show exceptional growth.
However, where is the actual growth in the global economy? The answer turns out to be fairly surprising.
In an analysis conducted by the Boston Consulting Group, about 52% of all global growth between 2014 and 2016 can be attributed just to China and the United States. Most interestingly, this is counter to the narrative that China is slowing and the United States is expanding its economy at a dismal pace.
After looking at the growth of every country, it turns out there are only 16 that are adding 1% or more growth to the whole picture. Every other country added together produces just 18.5% of total growth.
How do the MINT and BRICS countries do?
The MINT countries (Mexico, Indonesia, Nigeria and Turkey) all make it onto our chart and are respectively contributing 1.6%, 2.2%, 1.3% and 1.2% to global economic growth.
The BRICS countries (Brazil, Russia, India, China and South Africa) are an older story. While China (30.3%) and India (6.5%) make the chart, the other countries do not.
South Africa did not make the top 20 growth list put together by BCG. Russia has been struggling since oil prices collapsed and is actually negatively affecting global growth with minus-1.3% growth over the timeframe. Meanwhile, Brazil is anemic and is just adding 0.0% to total global growth through 2016.
Posted with permission of Visual Capitalist.