Intra BRICS Trade Now 37% Of Global Total

By Rhod Mackenzie

According to a report by Bloomberg, the five current members of the BRICS group have increased trade by 56% between 2017 and 2022, reaching around $422 billion in total last year.

BRICS currently comprises Brazil, Russia, India, China and South Africa, but will be joined by Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates in January next year. The decision to admit the new members was taken at the group's summit in Johannesburg in August.

According to Bloomberg analysts, the expanded group will account for nearly half of global output by 2040, doubling the share of the Group of Seven (G7), which includes the US, Canada, Britain, France, Italy, Germany and Japan.

Earlier this year, Russian President Vladimir Putin claimed that the BRICS had already overtaken the G7 in terms of the purchasing power parity (PPP) of their populations. Analysts estimate that the combined gross domestic product (GDP) of the enlarged BRICS in PPP terms will be around US$65 trillion. This would raise the group's share of global GDP to 37% from the current 31.5%. By comparison, the G7's share is currently around 29.9%.

The group was originally set up mainly to highlight investment opportunities among its members. It has become a key player in building a new "multipolar" world order that will help give a stronger voice to the global South. Other countries that have expressed interest in joining include Algeria, Indonesia, Nigeria and Turkey.