China, the world and wealth, according to Mr Brics

For Jim O'Neill, the economic grouping he gave a name to is a key building block in the world economy and an important cog in global trade, finance

Nearly 12 years ago, when Jim O'Neill, then chief economist for Goldman Sachs, coined the acronym BRIC for Brazil, Russia, India and China, he had never properly visited three of the four countries (the exception was China), and spoke none of their languages.

But O'Neill predicted that in a decade BRIC countries' combined share of global GDP could rise from 8 percent to about 14 percent, and that China's might approach that of Germany's, and time has proven him right.

BRIC economies grew spectacularly, capturing the world's attention and putting the term BRIC into the financial lexicon, and shaping investors', financiers' and policymakers' view of the emerging markets.

The BRICS countries (South Africa joined the grouping in late 2010), account for nearly 26 percent of the world's land mass, 43 percent of global population, 17 percent of trade, receive 11 percent of foreign direct investment, and have 25 percent of global GDP in terms of purchasing power parity and about one-fifth of global nominal GDP.

"Economically the achievements are much bigger than politically," says O'Neill, who some have dubbed Mr Brics and who is now chairman of Goldman Sachs Asset Management.

Economically, the BRICS countries, South Africa being the exception, have become much bigger, much more quickly than he had expected, even if they have lost some momentum in the past 12 months.

In 2011 alone their collective GDP rose by about $2.3 trillion (1.8 trillion euros), equivalent to that of Italy's GDP.

"By 2015, if not before, the combined size of the BRICS economies seems highly likely to become as big as that of the United States and they are set to become as big as the G7 by 2027," O'Neill says.

"It is transforming everything in the world economy including the patterns of world trade and finance."

Indeed, O'Neill remains confident about emerging markets, China in particular, and says he believes its growth will pick up again.

China is the most important BRICS member, he says, its GDP now being $8.3 trillion, as big as the GDP of the other BRICS countries combined.

O'Neill first came to China in 1990 and has since witnessed a major transformation in the country.

He shaped an era for Goldman Sachs Asset Management by shifting the focus from G7 countries to emerging markets, particularly China.

Last year GSAM contributed $5.2 billion to Goldman Sachs' overall revenue, more than the investment banking arm of the firm.

"The importance and scale of China for the world, never mind within the BRICS group, is next to none and vital for us all," O'Neill says.

As a result, the decisions that China makes in its own right and within BRICS are extremely important, he says.