A growth slowdown in emerging markets, in particular in one or several of the BRICS - Brazil, Russia, India, China and South Africa – could have significant spillovers to the rest of the world through trade and finance. Emerging markets have become major export destinations for the rest of the world as well as important sources of remittances, commodity supply and demand, foreign direct investment and official development assistance.
Oil prices fell below $30 a barrel on Friday amid continued turmoil in Chinese markets and concerns over Iranian oil exports, with the lifting of international sanctions possible within days. Brent crude, the global benchmark, slid 3.6 percent to $29.76 a barrel in London, while West Texas Intermediate (WTI), the U.S. benchmark dropped 5 percent to $29.64 a barrel in New York. Brent and WTI prices were on track to close lower for a third straight week, down nearly 20 percent since the beginning of the year.
BRICS growth has been slowing since 2010, reflecting a deceleration in potential growth. Until 2013, the slowdown was predominantly driven by external factors, but the role of domestic factors has increased in the past two years.