4/30/23, 9:27 PM The BRICS Has Overtaken The G7 In Global GDP - Silk Road Briefing

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The BRICS Has Overtaken The G7 In Global

GDP
 Mar 27, 2023 Posted by Silk Road Briefing (https://www.silkroadbriefing.com/news/author/silkroadbriefing/)

By Chris Devonshire-Ellis

The India-based Megh Updates (https://meghupdates.news/about-us) platform, one of

the world’s largest online informational platforms in terms of views, has stated that BRICS
countries have officially overtaken G7 in share of world PPP GDP, and that this trend can
be expected to continue.

The BRICS currently include Brazil, Russia, India, China and South Africa, while the G7
includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United
States, as well as the European Union.

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4/30/23, 9:27 PM The BRICS Has Overtaken The G7 In Global GDP - Silk Road Briefing

The BRICS is also expanding – Bangladesh, Egypt and the UAE have all just joined
(https://www.silkroadbriefing.com/news/2023/03/23/egypt-becomes-a-member-of-the-
brics-new-development-bank/) the BRICS New Development Bank, with numerous other
countries (https://www.silkroadbriefing.com/news/2022/11/09/the-new-candidate-
countries-for-brics-expansion/) poised to do the same.

A real shake up is also to be expected these coming days with Mexico, long part of the
North American free trade bloc NAFTA (now superseded by the Canada-United States-
Mexico Agreement (CUSMA) agreement) poised to join BRICS. That will be seen as a
direct affront to Mexico’s US relations and a sign that global economies, even on
America’s border, are having serious doubts about the US ability to trade on fair and
equal terms.

The current BRICS five now contribute 31.5% of global GDP, while the G7 share has
fallen to 30%. The BRICS is expected to contribute over 50% of global GDP by 2030, with
the proposed enlargement almost certainly bringing that forward. China’s GDP actually
overtook that of the United States in 2015 when comparing economies in purchasing
parity terms.

This will usher in significant global changes – exactly the sentiment that Chinese
President Xi Jinping stated in his parting words to Russian President Vladimir Putin as he
departed Moscow back to Beijing following their summit last week. The main issue is that
the BRICS grouping – including proposed new members – are very much in China and
Russia’s orbit, with the G7, including the EU and United States losing tractional influence
among them.

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4/30/23, 9:27 PM The BRICS Has Overtaken The G7 In Global GDP - Silk Road Briefing

That has been down to numerous issues, including an overall mistrust of the United
States foreign policy, a desire to ring-fence against sanctions by creating an alternative
trade bloc to the G7, what is seen as EU greed in global markets, and long-held animosity
against various European legacies from colonial times.

It can also be expected to usher in the much-discussed change from a unilateral global
base, led by the United States, to a multipolar one, led by the major BRICS economies.
With China’s Xi Jinping having just visited Russia, and Brazil’s President Luiz Inácio Lula
da Silva due in Beijing this week, the BRICS is going through changes in terms of
importance and global reach.

This will, commencing from now, lead to greater insistence from the BRICS in insisting
upon reforms within multiple global institutions, where they feel they are under-
represented. These include the structure of the United Nations, shareholdings in the
World Bank and IMF, and membership and renewal in terms of strengthening global
bodies such as the WTO and WHO. This can be expected to be slow to begin with but
develop into increasing pressure upon the G7 to relinquish control. The geopolitical
battlefield for the rest of this decade is going to become increasingly partisan, with the
danger of global divisions occurring unless the West can find ways to accommodate both
China, Russia and the now Western ambivalent new global order that is currently
coalescing.

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4/30/23, 9:27 PM The BRICS Has Overtaken The G7 In Global GDP - Silk Road Briefing

Intra-BRICS 2022 trade (https://www.silkroadbriefing.com/news/2022/11/17/intra-

brics-2022-trade/)

The BRICS is Expanding, Should The United States Be Concerned?

(https://www.silkroadbriefing.com/news/2022/11/16/the-brics-is-expanding-should-the-
united-states-be-concerned/)

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