The China Analyst

Brazil, India, Indonesia and China going strong; Russia and South Africa still lagging behind

• Brazil experienced 2.7% GDP growth during 2011, significantly below expectations. The laggard growth was a result of high interest rates, an appreciation of the real versus the dollar, which hurt exports manufacturers, as well as the effects of the ongoing Euro debt crisis
• Russia's economy grew by 4.3% in 2011, a small increment above the 4% economists were expecting. The growth was mainly ascribed to an increase in agricultural output coupled with strong consumer spending as well as record low inflation
• India's economy is estimated to have grown at 7.6% in 2011. Due to interest rate increases to curb inflation as well a slowdown in the mining, agriculture and manufacturing sectors, India's economic growth is forecast to dip below 7% in 2012
• In Indonesia, GDP grew at a rapid 6.5% in 2011, the highest rate of growth in over a decade. This was as a result of a large emerging middle class that is benefiting from new economic policies as well as a more stable government. Also contributing to the growth was a sustained increase in foreign direct investment in Indonesia
• Economic growth in China slowed in 2011 to 9.2% from 10.3% in 2010. This was  largely attributed to a moderation of export demand as well as stricter government policies aimed at reining in consumer and property prices. China aims to further reduce its GDP growth to 7.5% in 2012 partly as a reflection of low export demand from debt-stricken Europe and a frail US economy
• South Africa is estimated to have grown 3.1% in 2011, up from 2.9% in 2010. The main drivers for growth included finance, real estate and business services, which collectively contributed 0.7%. In 2012, lower demand from European countries will negatively affect South Africa's economy as exports and production in the mining, manufacturing and agricultural sectors will be contained