The countries that are part of the BRICS grouping will collectively surpass the G-7 group of developed countries in global trade by 2026, according to a research report.
From 2000 to 2023, the BRICS+ group’s share of global merchandise exports has risen from 10.7% to 23.3%, marking an impressive increase of 12.6 percentage points. In contrast, the G7’s share has seen a notable decline, dropping from 45.1% to 28.9%, the report by EY said
“Given the present trends and the likelihood of several new members joining the BRICS+ group being strong, the share of BRICS+ in global merchandise exports can overtake that of the G7 group by 2026.” Chief Policy Advisor, EY India and member of the 16th Finance Commission Advisory Council said.
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Brics originally included Brazil, Russia, India, China and South Africa. It is taken on other members including the United Arab Emirates, Iran, Egypt and Ethiopia.
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China’s contribution to BRICS+ exports has surged dramatically, increasing from 36.1% in 2000 to 62.5% in 2023. India has also made significant strides, contributing 7.9% to BRICS+ exports in 2023.
The group’s share of global high-tech exports has risen significantly, from just 5.0% in 2000 to 32.8% in 2022. This shift reflects a strategic move toward technology-intensive products, positioning BRICS+ nations as vital players in the global high-tech market.
“As geopolitical tensions continue, the coordinated policies among BRICS+ members may challenge the established dominance of the G7 and the US dollar, paving the way for a new multipolar global economic landscape. In fact, the BRICS+ group is establishing a platform for conducting international trade and investment transactions, which could become a low-cost alternative to the existing SWIFT platform. The group is also developing a trade and reserve currency, backed by gold and other select commodities.” adds Srivastava.
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