Despite the strong economic growth in recent years, “there will soon be a crisis in the BRICS (Brazil, Russia, India, China and South Africa)”, said the former Finance Minister of Portugal Luis Campos e Cunha.
“I think there will soon be a crisis in the BRICS, I just do not know when exactly,” said Campos e Cunha at the conference “The Role of the EU among the U.S. and the BRICS“, organized by Universidade Nova de Lisboa. “It’s crucial to take a view of the world with relativism and with a perspective of distance.”
“India has problems with the government and corruption. Brazil has an appreciation of the Real that is not sustainable and a significant housing bubble, not counting its own corruption issues,” he argued. “China has a demographic problem, associated with the one-child policy, has the political problem of being a dictatorship, and has big problems in banks disguised by state capitalism”.
These problems, sooner or later, will have direct consequences for the BRICS, said Campos e Cunha. “When the crisis is going to happen? I can’t say, but it will happen.”