Jim O’Neill, the Goldman Sachs economist who coined the BRICs acronym, recently published his final note and gave his last presentation.
He discussed at length his long-term forecast for the world economy, which will be heavily dependent on growth from China, India and the other developing markets.
“If China grows by 7.5% in this decade, and if the developed world returns close to trend, then the world will grow by around 4%,” he said.
In his presentation, he included a chart that captures China’s evolution from an investment-driven economy to a consumer-driven one.
This “is my regular guide to the relative performance of consumer spending compared to industrial production and is especially important while reasonably encouraging,” he said.