How BRICS Expansion is Set to Transform Global Trade and Economic Power Dynamics
Source: Visual Capitalist, 2023
At the recent BRICS summit in Johannesburg, six new countries were invited to join the bloc: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. This expansion marks a significant moment in the group’s history, highlighting its growing influence in global trade and economic growth.
Since being coined in 2001 there has been an influx of applicants to join the BRICS, with South Africa being last country to be added in 2010. However, while the acronym remains the BRICS, the pace of expansion has accelerated.
The timeline below logs the group’s summits and major announcements since the “BRIC” group was unofficially coined in a 2001 Goldman Sachs report.
Projections indicate that by 2050, BRICS economies, led by China and India, will surpass the G7 in real GDP growth. India, in particular, is expected to grow from a $3.4 trillion economy in 2022 to $22.2 trillion by 2050, outpacing all G7 economies except the U.S.
The group’s future growth is primarily driven by two major economies, China and India.
The chart below highlights the projected real GDP growth rates for each BRICS nation from 2022 to 2050, showing that both original and new members are expected to achieve triple-digit growth. In contrast, G7 countries are forecasted to grow between 40-70%, with India poised to surpass all G7 economies in size except the United States.
Analyzing the top three imports and exports of BRICS nations reveals that many members’ primary exports align well with the primary imports of other members, particularly in crude and refined petroleum, cereals and fertilizers, and gold. This complementarity suggests that trade and interdependence among BRICS nations are likely to grow even further.
As the next BRICS summit approaches in October 2024 in Kazan, Russia, it will be intriguing to observe how the inclusion of new members shapes the group and whether the ongoing conflict in Ukraine will still be a factor at that time.
Read the full article here: Special Dispatch | Breaking Down BRICS 🌍 (mailchi.mp)
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Photo credits: Visual Capitalist, and Research IP