The group of developing countries will be a bigger force for growth than the Group of Seven big economies in the West.
From this year on, members of the BRICS group (Brazil, Russia, India, China, and South Africa) are projected to contribute more to the growth of the world economy than the US-led G7. This was reported by Bloomberg on Monday.
Based on the most recent IMF figures, the outlet’s calculations show that the BRICS countries will be responsible for 32.1% of the world’s growth, while the G7 will only be responsible for 29.9%.
The US, UK, Canada, France, Germany, Italy, and Japan make up the Group of Seven (G7). For a long time, the G7 was thought to be the most economically advanced group of countries in the world. Russia was a member until 2014 when it was kicked out because of the Maidan coup in Ukraine, which was backed by the West.
The study said that in 2020, the BRICS countries and the G7 contributed the same amount to the growth of the world economy. Since then, the group led by the West has been getting worse. By 2028, the G7 will only be contributing 27.8% to the world economy, while the BRICS will be contributing 35%.
Bloomberg’s figures show that China’s share of global growth will double that of the US over the next five years, making it the biggest contributor to growth. By 2028, the outlet wrote, China’s part of world GDP growth is expected to be 22.6% of the world’s total growth. India is expected to make up 12.9% of the world’s GDP.
“More than half of the world’s growth is expected to come from the top four countries: China, India, the United States, and Indonesia.” Even though Group of Seven countries will contribute less, Germany, Japan, the UK, and France are expected to be among the top 10 donors,” the news source wrote.
A recent study by a macroeconomics research company in the UK also found that the difference between the two groups in terms of their weight in the global economy is likely to keep getting bigger. Analysts said that China and India had strong economic growth and that more countries want to join the BRICS group.
Russian Foreign Minister Sergey Lavrov said earlier this year that “more than a dozen” countries, including Algeria, Argentina, Bahrain, Bangladesh, Indonesia, Iran, Egypt, Mexico, Nigeria, Pakistan, Sudan, Syria, Türkiye, the United Arab Emirates, and Venezuela, have shown interest in joining BRICS. Saudi Arabia, Egypt, and Bangladesh have all bought shares of the New Development Bank, which is the group that BRICS uses to get money.
Last year, the BRICS countries talked about making their own currency so they wouldn’t have to use the US dollar and the euro to trade with each other.