China and BRIC are key to global rescue.

A recent note from HSBC passed on this information which we believe is worth sharing.

“Jim O’Neill, the Goldman Sachs economist who in 2001 coined the acronym BRIC economies, says the faster growth investors have come to expect from these countries will survive this crisis. O’Neill believes the citizens of
BRIC nations are poised to spend more, the BRIC consumer is going to rescue the world,he says.

While Chinese consumers, as a group, do not spend more than their American counterparts, their outlays are growing.
China’s retail sales jumped 22% in October. Consumer purchases in the US, by contrast, dropped in Q3 for the first time in seven years. Since October 2007, the Chinese shopper alone has been contributing more to global GDP growth than the American consumer, O’Neill wrote. He predicts BRIC economies will account for 20% of global economic output by 2010
compared its current contribution of about 15%.”

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