Brazil, Russia, India, China, and South Africa, together known as BRICS group, are anticipated to outdo the G7 group, from this year, in contributing to the global economic growth, Bloomberg, a media company, said in its report on Monday.
As per the media company, by 2028, the G7’s contribution to the global economy is anticipated to come down to 27.8%, while the BRICS will have a 35% share.
The media company has based its assessment on International Monetary Fund’s (IMF) latest data. According to its assessment, in 2023, the contribution of BRICS countries will be 32.1% of the global growth; however, the Group of Seven nations’ (G7), contribution will be lower, at 29.9%.
The G7 members, which includes US, UK, Canada, France, Germany, Italy, and Japan, is interpreted as the most advanced economies of the world. Russia was a part of this group, but from 2014 it has ceased to be the group’s member after being kicked out due to the consequence of the Western-backed ‘Revolution of Dignity’ or Ukrainian Revolution.
According to the report, in 2020, BRICS and G7 countries together contributed to world’s economic growth equally. However, the economic situation of the western countries has been deteriorating since then. The report has also anticipated G7’s economic contribution to come down to 27.8% by 2028.
The report by Bloomberg reveals that China will be the highest contributor to global growth in the coming five years. Its share, during this time, will double that of the US. By 2028, China is anticipated to contribute 22.6% of global growth as its share of global GDP expansion. Also, as per Bloomberg, India is expected to represent 12.9% of global GDP.
Bloomberg, in its report, wrote, “In total, 75% of global growth is expected to be concentrated in 20 countries and over half in the top four: China, India, the US and Indonesia. While Group of Seven countries will comprise a smaller share, Germany, Japan, the United Kingdom and France are seen among the top 10 contributors.”
Both the groups will continue to be far apart in the context of global economic weight, a latest study by a macroeconomics research firm, based in UK, found out. The analysts saw two trends, one that India and China have been experiencing strong economic growth and that countries in large number have expressed interest in joining BRICS.
Russian Foreign Minister Sergey Lavrov, stating early this year, said that “more than a dozen” countries have shown inclination for becoming a member of BRICS, including Algeria, Argentina, Bahrain, Bangladesh, Indonesia, Iran, Egypt, Mexico, Nigeria, Pakistan, Sudan, Syria, Türkiye, the United Arab Emirates, and Venezuela. Egypt, Bangladesh, and Saudi Arabia have gained equity in the New Development Bank, the funding organization of BRICS.
The BRICS nations proposed making of their own currency last year, in an effort to replace the US dollar and the euro in mutual trade.