The set of countries known collectively as BRICS have overtaken G7 nations in the share of world gross domestic product (GDP) at purchasing power parity (PPP), shifting the international economic power balance.
“According to a new report from Acorn Macro Consulting, the BRICS group, made up of the world’s five largest developing economies, has now surpassed the Group of Seven (G7), by comprising a bigger share of the world’s gross domestic product (GDP), based on purchasing power parity.
According to the research by the UK-based macroeconomic research firm, the combined BRICS nations, Brazil, Russia, India, China, and South Africa, are responsible for generating 31.5% of the world’s GDP. At the same time, the G7 nations, made up of the U.S., Canada, France, Germany, Italy, Japan, and the UK, considered the most advanced economic nations, only were responsible for generating 30.7% of the of the global GDP.
Analysts say they expect the gap between the two groups to continue to grow, given the robust growth of both China and India’s economies, and the fact that there are more countries looking to join the BRICS alliance.
Russian Foreign Minister Sergey Lavrov said earlier this year that there are presently ‘more than a dozen’ nations which have expressed an interest in joining the BRICS alliance, among which are Algeria, Argentina, Bahrain, Bangladesh, Indonesia, Iran, Egypt, Mexico, Nigeria, Pakistan, Sudan, Syria, Turkey, the United Arab Emirates and Venezuela. At the same time, Saudi Arabia, Egypt and Bangladesh have acquired equity in BRICS’ funding organization, the New Development Bank.
BRICS nations had proposed last year creating their own currency, so as to allow them to move away from the dollar and the euro when settling trade obligations in mutual transactions.
The drive toward de-dollarization was heightened by the difficulties Russia has endured performing settlements in those currencies following the imposition of economic sanctions in response to the war in Ukraine. More recently, Russian President Vladimir Putin has suggested moving toward BRICS allies and other international partners in Asia, Africa, and Latin America settling trade obligations in Chinese yuan, further accelerating the bloc’s de-dollarization”. -David Greenberg, Daily Financial Trends
The emerging BRICS economies are expected to contribute over 50% of worldwide GDP by 2030.
This is the true basis for World War III.
While countries such as Bangladesh, Egypt, Saudi Arabia, Turkey, and the United Arab Emirates have all recently become members of the BRICS New Development Bank (NDB), the real shake-up is expected to occur once Mexico, long part of the North American free trade bloc NAFTA (now superseded by the Canada-United States-Mexico Agreement (CUSMA) agreement) becomes the next nation to join BRICS.
By now, it seems increasingly apparent that the United States and its G7 partners miscalculated both the impact sanctions would have on the Russian economy, as well as the blowback that would hit the Western financial system.