BRICS is set to add six new member states at the start of 2024, raising questions about the expansion of the group’s growing economic power.FreepikWith its new entrants, the bloc will represent over $30 trillion in GDP or around 29% of the world’s GDP.This graphic compares the GDP of BRICS nations to the G7 by using GDP projections for 2023 from the International Monetary Fund (IMF).Even with its new members, BRICS falls short of the G7’s 43% share of global GDP. However, the gap is likely to shrink as major BRICS nations such as India continue to grow at above-average rates—and as the group likely welcomes even more members in the future. How Does BRICS Compare to the G7 with its New Members?Prior to the addition of its new members (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE), BRICS had a cumulative GDP of $27.7 trillion, a 26% share of global GDP. BRICS’ new members add $3.1 trillion of GDP to the bloc, with Saudi Arabia contributing the most thanks to its GDP of $1.1 trillion.In the tables below, you can see how new members affect the bloc’s GDP, and how the BRICS compare to G7 countries.*New additions to BRICS that will join bloc on January 2024
Source: IMF Source: IMF Even with its new members, BRICS still falls short of the G7’s $45.9 trillion in GDP, however, the new members do add other contributions besides raw GDP to the bloc.With the addition of Saudi Arabia, the UAE, and Iran, BRICS more than doubles its members’ share of global oil production to 43%. Along with petroleum, Argentina’s addition to BRICS significantly expands the total lithium reserves of the group, which will be key as global battery production and EV adoption continue to grow.As BRICS seems set to create an alternate trade and financial system that operates independently from the U.S. dollar, adding nations with more natural resources is essential. Future Economic Growth of BRICS vs. G7 NationsWhile the new BRICS members don’t have too big of a GDP contribution to the bloc currently, it’s worth noting that many of the new entrants have significant growth ahead of them.Many of BRICS’ current members already have real GDP growth rates that are higher than their G7 counterparts, with current members having an average GDP growth of 189% to 2050 compared to the G7’s average of 50%, according to Goldman Sachs.BRICS’ newly added members like Ethiopia (1,170% GDP growth projected by 2050) and Egypt (635% GDP growth projected by 2050) have even higher rates of potential economic growth, further raising the bloc’s economic potential.Goldman Sachs forecasts indicate that by 2050, BRICS will have overtaken the G7 in terms of GDP, even without its newly added members. Whether or not these projections pan out is yet to be determined, however with BRICS intent on adding even more members, the group is likely to eclipse the G7’s GDP in the coming decades.More By This Author:Charted: 50 Years Of Music Industry Revenues, By Format
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