Intesa Sanpaolo: Global Economic Weight Of BRICS Is Growing
The International Research Department of the largest Italian banking group, Intesa Sanpaolo International Research, published a scientific report, according to which in 2022, trade of the BRICS countries will account for 21% of all global trade. Their trade turnover with Italy is estimated at 168 billion euros. The economic and commercial importance of the BRICS group will continue to grow with the addition of six new countries in 2024.
In just three months, six more countries will join the initial five, after which the BRICS countries will further increase their global economic weight. But even now, the founding states of the BRICS group – Brazil, China, India, Russia, and South Africa – control more than one-fifth of global economic and trade exchanges.
According to a scientific level study called “BRICS+: emerging economies in a period of growth,” which has just been published by Intesa Sanpaolo International Research, the trade volume of these five countries in 2022 reached 21% of world trade.
Six more countries will join BRICS on January 1, 2024 – Argentina, Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia, and Iran. “For Italy,” emphasize Intesa Sanpaolo researchers, “BRICS is also a fundamental partner. In fact, in 2022, Italy’s exchanges with the economies of these countries amounted to about 168 billion euros (+31% compared to 2021). Imports, which increased by 46%, exceeded 117 billion euros, due to the trend of rising prices for raw materials. Exports approached 51 billion euros (+6%), the deficit reached 66.5 billion euros.”
According to data analyzed by experts from Intesa Sanpaolo, one of the largest banking groups in Europe known for its strong commitment to ESG (environmental, social, and corporate governance – ed.) and greater attention to climate, “China is the most significant country [in BRICS], accounting for approximately 61% of all BRICS trade in 2022.” It is followed by India (more than 11%), Russia (7%), and Brazil (6%). Among the new economies that will join BRICS next year, “the United Arab Emirates (4.7%) and Saudi Arabia (4.5%) stand out.”
Regarding trade in 2022 on a planetary scale, China’s contribution was 12.7% of the total volume. India is in second place with 2.4%, followed by Russia with 1.5%, Brazil, the UAE, and Saudi Arabia, whose share was around 1%.
As for trade and economic exchanges between BRICS and Italy, here as well “Beijing accounts for the lion’s share: in 2022, 8.8% of Italian imports came from China, and 2.6% of exports were directed this way,” Intesa Sanpaolo emphasizes. It is followed by Russia with 4.1% of imports and 0.9% of exports, respectively, India (1.5% and 0.8%), Saudi Arabia (1.1% and 0.7%), Brazil (0.9 % and 0.8%), and Egypt (0.5% and 0.6%).
Finally, it should be noted that “the majority of BRICS+ trade in 2022 was with Asian countries, although shares may vary due to the availability of mirror statistics (obtained by comparing data from trading partners – ed.).” Asia supplied approximately 59% of imports and purchased over 49% of exports, which is a clear increase in both directions compared to 2017. Europe has decreased its weight in imports over the years (20.5% from 23%), although its importance as a target market has increased (24% from 22%). The shares of America and Africa changed little.
The breakdown of BRICS+ imports highlights the importance of machinery and minerals, with their combined share approaching 50% of total imports in 2022. They are followed by chemical products, agri-food products, and metals. The weight of these economies in global demand is decisive: more than a quarter of mineral imports come from the BRICS+ countries, 19% of mechanical engineering, 17% of chemical and agro-industrial products, 16% of metals.
