BRICS: Group’s Share of Global GDP Exceeds That of G7

BRICS financial experts are working on the creation of a common deposit system for the international group's member countries

Anton Siluanov

The share of the 10 member countries of the BRICS group in world gross domestic product (GDP), calculated on the basis of purchasing power parity (PPP), already exceeds that of the G7 countries. This was announced by Russian Finance Minister Anton Siluanov at the opening of the second meeting of finance ministers, heads of central banks of the BRICS countries, and the New Development Bank – the credit organization of the group. The took place ahead of the BRICS summit to be held in Kazan, Russia, on October 22-24, 2024. More than 40 heads of state and government are expected to attend the event, including Turkish President Recep Tayyip Erdogan, as well as UN Secretary-General António Guterres.

Siluanov emphasized that “the average growth rate of the BRICS group economies in its new composition at the beginning of 2024 will be 4.4% per year, while the global average is 3.2 percent.” In January 2024, the BRICS group, which originally comprised Brazil, Russia, India, China, and South Africa, was expanded by five new members: Saudi Arabia, Ethiopia, Egypt, the United Arab Emirates, and Iran. Turkey, along with many other countries, including Cuba, Indonesia, and Vietnam, have requested to join BRICS as full members.

“The BRICS countries’ share of global GDP in purchasing power parity terms will reach a record 36.7% in 2024, compared with the G7 countries’ 29.6% share,” the Russian minister said, according to whom the group is working, among other things, to create “a common deposit system for the association’s member countries.” According to Siluanov, “in addition to payment infrastructure similar to SWIFT, BRICS is working on the creation of a deposit system for member countries, which will be called BRICS-Clear.” The goal is to “create within the BRICS community a securities accounting system similar to that of Western countries,” which, however, has become difficult to use for Russia and some other countries in the group, including Iran, the report said, “due to illegal international sanctions.”