The combination of a higher risk premium and lower growth would then worsen the autonomous debt dynamics. Indeed, the interest rate-growth rate differential has widened significantly in many Eurozone countries since the global crisis.
These emerging nations of Brazil, Russia, India, and China, or as they are more popularly known, the BRICs, are already major players in the world economy. They have 40 per cent of the world’s population spread out over three continents and already account for 25 per cent of global GDP.