Survey finds global balance of power unlikely to shift from G8 to BRIC

PUNE: A four year study conducted by market research company Ipsos shows that the previously anticipated shift of power from the G8 to the BRIC countries is unlikely to happen in the foreseeable future.

The improving economic sentiments in the G8 countries, particularly the USA and UK signal that these countries are on the path to recovery. National sentiment in the USA is higher than it has been since the 2008 recession and the housing market too has been showing signs of recovering.

Existing-home sales recently rose to the highest point they have reached in nearly four years. While the UK is moving slower, household debt has been falling gradually.

On the other hand, countries like Brazil and India which everyone was optimistic about even during the early days of the recession have been performing inconsistently.

“Economic assessments in India did respond negatively to the 2008/2009 crisis but jumped back suddenly, leading to global optimism that this emerging economy would be a strong global leader. However, the sentiment went up and down, like in Brazil, leading eventually to a downward-trending line especially since early 2012,” said Mick Gordon, CEO, Ipsos India.

It is expected now that the G8 countries may have a more enduring, albeit slow, recovery while questions are being raised as to whether the BRIC countries will be able to sustain the rapid growth that defined them at the start of the century.

The early post-recession period invited predictions that emerging economies might overtake more traditionally-developed nations in terms of economic power. That is increasingly looking unlikely according to the survey.The Ipsos Economic Pulse of the World was carried out online 18,503 people in 25 countries.