Brazil, Russia, India, China, and South Africa are expected to register a moderate growth in H2 2013 owing to restrained industrial growth, sluggish recovery in exports and lackluster domestic demand. The competitive advantage of low costs in the BRICS economies will also continue to decline with the rise in labor costs. Increase in interbank borrowing rates to curtail excess credit supply in the Chinese economy is likely to dampen investors’ sentiments. Alongside rising inflation, sweeping anti-government demonstrations in Brazil and South Africa will remain a concern in H2 2013. In India, structural reforms have been initiated to reinstate pre-crisis growth levels before the national elections in H1 2014.