BRICS vs G7: Has the Crypto Gap Finally Closed?

• BRICS Economic Alliance: Closing the Gap on the G7?
• Exploring Multipolarity: An Initiative by BRICS
• BRICS: The Dominating Force in the Multipolar World
• Affirmative Response with a Nuance
• BRICS: Accounting for a Notable Share of Global Production, Trade, and Direct Investments
• BRICS: Predicted to Lead Global GDP by 2040

BRICS Economic Alliance: Closing the Gap on the G7?

The BRICS economic alliance, established in 2001, has consistently worked towards restructuring the global order. The bloc has focused on altering the equilibrium of power and reducing the international dominance of Western powers in global affairs. There has been considerable growth observed in 2023. This prompts the question: has the BRICS alliance succeeded in bridging the gap with the G7?

Exploring Multipolarity: An Initiative by BRICS

Throughout the previous year, the countries constituting BRICS have extensively explored the concept of multipolarity. This principle revolves around restoring genuine global equality. The bloc's de-dollarization initiatives have started to take effect, and its expansion has been widely accepted. As a result, the potential to challenge the world order has come into reality.

BRICS: The Dominating Force in the Multipolar World

It was exactly 21 years ago when Goldman Sachs' Jim O'Neill pioneered the term BRICS. He specifically pinpointed a set of countries that, according to his predictions, would dictate the balance of global economic power. He grouped nations that demonstrated the strongest potential to challenge the Western status quo.

The economic alliance has thrived since then, but a significant shift was observed in 2023. Indeed, the bloc witnessed its most comprehensive growth cycle since its inception in 2001. With an expansion to six additional countries and bloc-wide de-dollarization, could the BRICS alliance have successfully bridged the gap with the G7?

Affirmative Response with a Nuance

The answer is an emphatic yes with some degree of explanation required. While the bloc has not yet overtaken the Western alliance, it has undoubtedly narrowed the distance between them. Furthermore, some even argue that BRICS has already achieved the envisioned multipolarity in the global economy.

BRICS: Accounting for a Notable Share of Global Production, Trade, and Direct Investments

Reports illustrate that the BRICS countries accounted for 32% of production, 18% of total trade, and 25% of direct investments in 2022. However, this was before Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia joined the alliance. Comprising 40% of the world's population, the alliance is projected to solidify its establishment in 2024.

BRICS: Predicted to Lead Global GDP by 2040

Predictions suggest that BRICS will occupy a world-leading position in terms of GDP by 2040. As the economies within the bloc are set to prosper, the inception of a shift towards multipolarity has already been initiated. Over the following decade, this gap is expected to shrink even further. The growth potential of the alliance in the future may be uncertain. Still, it is abundantly clear that the balance of global power will have definitely shifted.

Edited by Jonathan Stoker