A new report by EY India suggests that, given current trends and the potential addition of new members, BRICS+ could surpass the G7 in global merchandise exports by 2026.

The rising influence of major countries like India and China is changing the global economic landscape, shifting focus from the G7 to BRICS.

The October edition of EY Economy Watch reveals a notable change in global trade dynamics, with the BRICS+ group rapidly increasing its share of merchandise exports and imports.

From 2000 to 2023, BRICS+’s share of global merchandise exports rose from 10.7% to 23.3%, an increase of 12.6 percentage points.

In contrast to BRICS+, the G7’s share of global merchandise exports has decreased significantly from 45.1% to 28.9%, while the rest of the world saw a slight increase from 44.2% to 47.9%.

The G7 includes advanced economies such as the US, Canada, France, Germany, Italy, Japan, and the UK.

EY India indicates that the growing prominence of BRICS+ in global trade points to a shift towards a multipolar economic landscape.

EY India Chief Policy Advisor DK Srivastava stated that, given current trends and the potential addition of new members, BRICS+ could surpass the G7 in global merchandise exports by 2026.

BRICS comprises Brazil, Russia, India, China, and South Africa, with recent expansions including Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.

India and China are pivotal to transforming the BRICS+ alliance, ranked first and third globally in purchasing power parity (PPP) last year.

Both countries are expected to maintain their rankings by 2030.

China’s contribution to BRICS+ exports surged from 36.1% in 2000 to 62.5% in 2023, while India increased its share to 7.9% in the same year.

According to Srivastava, ongoing geopolitical tensions may enable coordinated policies among BRICS+ members to challenge the G7’s dominance and the US dollar, leading to a new multipolar economic landscape.

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