The growing influence of major nations like India and China is reshaping the global economic landscape, thereby shifting the focus towards BRICS from the G7 countries, ANI reported.
EY Economy Watch’s October edition has highlighted a significant shift in global trade dynamics, detailing how the BRICS+ group is witnessing a rapid increase in its share in merchandise exports and imports.
Between 2000 and 2023, the share of global merchandise exports of BRICS+ jumped from 10.7% to 23.3%, marking a significant increase of 12.6 percentage points.
In contrast, the share of the G7 group has seen a notable decline from 45.1% to 28.9%. The rest of the world managed to maintain a relatively stable share, with a slight increase from 44.2% to 47.9%.
The G7 group includes advanced economies such as the US, Canada, France, Germany, Italy, Japan and the UK.
As per EY India, this trend shows the BRICS+’s growing prominence in the global trade arena and suggests a shift towards a multipolar global economic landscape.
“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,” PTI quoted EY India Chief Policy Advisor DK Srivastava as saying.
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BRICS include Brazil, Russia, India, China and South Africa, while it has now expanded with a few additional members — Egypt, Ethiopia, Iran, Saudi Arabia and the UAE.
The report highlights that central to this transformation are India and China — key members of the BRICS+ alliance.
Last year, these nations were ranked third and first, globally in terms of purchasing power parity (PPP).
Further, they are expected to retain these positions by 2030.
The contribution of China towards the BRICS+ exports has witnessed a major spike from 36.1% in 2000 to 62.5% in 2023. Similarly, India also made significant strides and contributed 7.9% to BRICS+ exports in 2023.
Besides this, the analysis by EY India underscores the growing importance of high-tech exports from BRICS+ countries.
While the group’s share of global high-tech exports was a mere 5% in 2000, it has now jumped to 32.8% in 2022.
Additionally, the currencies of BRICS+ nations are also gaining major traction in the global economy, with the Yuan remaining stable. On the other hand, the share of the US dollar as a global reserve currency came down from 71.5% in 2000 to 58.2% in 2024.
“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,” Srivastava said.