BRICS's "formidable" growth and influence compared to the G7

The BRICS group of countries – Brazil, Russia, India, China and South Africa – is not “wasting energy” on discussions about geopolitical competition with other groups, such as the G7, South African Ambassador to BRICS Anil Sooklal told TASS news agency on August 24.

“We do not waste our energy on discussions about competition and counterbalance… Because that is not the purpose of BRICS,” Mr. Sooklal said.

“BRICS is about the Global South. It is about global structural reform and working towards a more equitable global order,” the South African diplomat added.

However, like it or not, since its inception, BRICS has faced comparisons with the G7 on the basis of economic growth and other metrics.

In recent years, the rise of the five-nation bloc has drawn attention to its impact as a geopolitical force, creating a growing counterweight to the traditional influence of the G7.

For a long time, the G7 – comprising the United States, Canada, the United Kingdom, Germany, France, Italy and Japan – has held the reins of global economic governance and decision-making. However, as the BRICS nations have experienced rapid economic growth and development, the emerging bloc’s collective influence and ambition have begun to grow.

In terms of GDP at purchasing power parity (PPP), the BRICS surpassed the G7 in 2020. According to the IMF, the bloc will account for a total of 32.1% of global GDP this year. That is up from just 16.9% in 1995 and higher than the G7's 29.9%.

The rise of the BRICS nations, though not without challenges and disparities within the bloc, has led to growing calls for more representative and inclusive global governance, giving weight to voices that do not follow the trajectory of policies shaped by the West.

Global GDP Ratio: BRICS vs. G7

BRICS and G7 population

BRICS currently represents 40% of the world's population and 32% of its GDP, but one of the main topics of discussion at the group's three-day summit in South Africa was the admission of new members.

Russian news agency Sputnik quoted host South African President Cyril Ramaphosa as saying on August 24 that BRICS adopted the Johannesburg Declaration II, which included the decision to expand the bloc.

Accordingly, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) will become full members of BRICS from January 2024.

“Despite the disagreements among BRICS members, they are said to have more in common than the Western strategic community expected, and all see the rise of multipolarity as a good thing,” said Yu Jie, an analyst at the UK-based Chatham House think tank. “As a result, all are expected to play a more active role in defining the current world order.”

Top investor in BRICS

The ongoing BRICS leaders' meeting in South Africa also discussed ways to reduce the dominance of the US dollar in global trade.

Nevertheless, the G7 and BRICS remain two groups with close economic ties. Many G7 member countries are the largest investors in the BRICS countries. China itself is also a major investor in the BRICS member countries .

Minh Duc (According to The National News, TASS)

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