BRICS set to exceed G7 in world GPD share

11/13/2023 6:46:47 AM

(MENAFN) According to a recent report from a UK-based media outlet, the rapid ascent of the BRICS is reshaping the global economy, with the group's share of world GDP in terms of purchasing power parity (PPP) expected to surpass that of the Group of Seven (G7) major advanced economies.

Currently composed of Brazil, Russia, India, China, as well as South Africa, the BRICS will welcome new members in January, including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.

The G7, representing industrialized and developed nations, includes the US, Canada, the UK, France, Italy, Germany, and Japan.

The report highlighted that the expanded BRICS already surpass the G7, accounting for 36 percent of the global economy in 2022, compared to the G7's 30 percent share of the advanced economy group.

“Our forecasts suggest an expanding workforce and ample room for technological catch-up will boost the BRICS+ share to 45 percent by 2040, compared with 21 percent for G7 economies. In effect, BRICS+ and the G7 will have swapped places in relative size between 2001 and 2040,” the news outlet reported.

Additionally, the media outlet noted that the expanded BRICS economic group will encompass some of the world's most significant oil exporters, including Saudi Arabia, Russia, the UAE, and Iran. Furthermore, it will include major oil importers such as China and India, further emphasizing the diverse and influential role the group plays in the global economy.

“If it [BRICS] succeeds in shifting some settlement of oil transactions toward other currencies, that could have a knock-on effect on the share of the dollar in international trade and global foreign exchange reserves,” the statement also mentioned, highlighting the active efforts by BRICS members to move away from the use of the US dollar in their trade activities.

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