BRICS Expansion Increases Group’s Economic Power

The expansion of the BRICS group of countries has increased the share of this international organization in the world economy from 32% to 37%. This was stated by Director General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala. “The G7 countries currently control 30% of global output, while BRICS member countries already controlled 32% before the expansion, and after the expansion in early 2024, this share has increased further to 37% of global output,” Ngozi Okonjo-Iweala told the Bretton Woods Committee, which is convened as part of the joint spring conference of the International Monetary Fund and the World Bank.

According to the WTO head, “the fragmentation of the world economy, its division into blocks is a negative and alarming process, which in the long term can lead to the loss of at least 5% of global GDP.”

Starting January 1, 2024, Egypt, Iran, UAE, Saudi Arabia, and Ethiopia fully joined the founding countries of BRICS (Brazil, Russia, India, China, South Africa).

The expansion of the BRICS group faces growing resistance from the USA and its allies, who are increasingly concerned about the development of autonomous financial mechanisms. Russian Foreign Minister Sergei Lavrov said at a meeting of the United Russia party’s general council that the creation of new financial mechanisms “will challenge the mechanisms of globalization that are now operating under the command of the West.” According to the Russian diplomat, Moscow is “interested in increasing the role of the BRICS countries not only in global production, but also in international monetary, financial, and trade systems.” Russia is in favor of developing interbank cooperation, expanding the use of national currencies, and joining efforts to create BRICS’ own international stock exchange.