BRICS Trade Skyrockets in Anticipation of Enlargement

(MENAFN) In a remarkable surge of economic activity, the five existing members of the BRICS group - Brazil, Russia, India, China, and South Africa - have witnessed a staggering 56 percent increase in trade from 2017 to 2022, culminating in a total turnover of approximately USD422 billion last year. This robust growth in trade sets the stage for the imminent expansion of the group, as Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab of Emirates are set to join in January.

The decision to admit these new members was formalized during the group's summit held in Johannesburg this past August, signaling a significant expansion of BRICS' economic influence on the global stage. Analysts predict that by 2040, the enlarged BRICS bloc will represent nearly half of the world's total economic output, effectively doubling the share held by the Group of Seven (G7) nations, which include the US, Canada, United Kingdom, France, Italy, Germany, and Japan.

Russian President Vladimir Putin recently asserted that BRICS has already surpassed the G7 in terms of the purchasing power parity (PPP) of their populations, highlighting the group's formidable economic potential. Projections indicate that the combined gross domestic product (GDP) of the expanded BRICS, based on PPP calculations, will reach approximately USD65 trillion. This surge would elevate the group's share of global GDP from the current 31.5 percent to an impressive 37 percent underscoring BRICS' growing economic significance on the world stage. By comparison, the G7 currently holds a collective share of approximately 29.9 percent of global GDP.

The origin of the BRICS bloc can be traced back to the term "BRIC," coined by economists to represent the four nations - Brazil, Russia, India, and China - initially identified as possessing the potential to emerge as dominant players in the 21st-century global economy. Formed in 2006, the group later welcomed South Africa as a new member, resulting in the inclusion of the letter "S" in the acronym. Since then, BRICS has evolved into a formidable coalition, poised to reshape the landscape of global economic influence in the years to come.

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