According to Bloomberg, the five current members of the BRICS group, Brazil, Russia, India, China, and South Africa, have experienced a significant increase in trade. From 2017 to 2022, trade between these nations grew by 56% and reached a total turnover of $422 billion last year.
Excitingly, the BRICS group is set to expand in January, welcoming new members including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. This decision was made during the group’s August summit in Johannesburg.
Analysts predict that with the addition of these new members, the expanded BRICS group will represent nearly half of global output by 2040, effectively doubling the share of the Group of Seven (G7) countries. The G7 currently consists of the United States, Canada, United Kingdom, France, Italy, Germany, and Japan.
Russian President Vladimir Putin has previously claimed that BRICS has already surpassed the G7 in terms of the purchasing power parity (PPP) of their populations, indicating the group’s economic strength.
Experts project that the combined gross domestic product (GDP) of the expanded BRICS, measured in terms of PPP, will amount to around $65 trillion. This would boost the group’s share of global GDP from the current 31.5% to 37%, surpassing the G7’s current share of 29.9%.
The formation of BRICS began in 2006 with the acronym ‘BRIC’, representing Brazil, Russia, India, and China. These four nations were identified by economists as having significant global economic potential in the 21st century. South Africa joined the group later, adding the ‘S’ to the acronym.
Initially, BRICS was primarily focused on highlighting investment opportunities among its members. However, it has since evolved to play a crucial role in building a new “multipolar” world order, giving a stronger voice to the Global South.
In 2014, the BRICS group launched its own international lender, the New Development Bank (NDB). This move was seen as an alternative to traditional financial institutions like the International Monetary Fund (IMF) and World Bank, which are dominated by the United States. The NDB provides funding for infrastructure and sustainable development projects.
The NDB officially commenced operations in 2015 and has since been joined by Bangladesh, the United Arab Emirates, Egypt, and Uruguay.
Overall, the expansion and economic growth of the BRICS group signify its increasing significance on the global stage. With a growing share of global output and GDP, the group is set to play a key role in shaping the future world economy.
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