After a decade of manic growth, gross domestic product in Brazil, Russia, India and China rose at the slowest pace in almost two years last quarter.
Goldman Sachs analysts now say growth among the BRIC economies has probably peaked because of a smaller supply of new workers, according to InvestmentNews.
Average economic growth in the BRIC countries will decelerate to 6.1% next year from a high of 9.7% in 2007, according to the International Monetary Fund. That would narrow the gap over America’s expansion to 4.3 percentage points, the smallest since 2004.
In the past decade, mutual funds poured almost $70 billion into Brazil, Russia, India and China as their economies grew four times faster than America’s. But BRIC funds recorded $15 billion of outflows this year as the MSCI BRIC Index sank 24%.