BRICS to overtake G7 in as leaders of globaleconomic growth 

Published: April 21,2023

By staff writer 

© Getty Images / lvcandy

A report by Bloomberg this week revealed that members of the BRICS group – Brazil, Russia, India, China, and South Africa are expected to outpace the US-led G7 in terms of their contribution to the world’s economic growth, from this year.

Based on the latest IMF data –the BRICS countries will contribute 32.1% of the world’s growth, compared to the G7’s 29.9, the report said.

In 2020, the contributions from BRICS countries and the G7 to global economic growth were equal according to the Bloomberg report. Since then the performance of the Western-led bloc has been declining. By 2028, the G7’s contribution to the world economy is predicted to decrease to 27.8%, while the BRICS will account for 35%.

over the next five years, Bloomberg calculations show that China will be the top contributor to global growth with its share set to be double that of the US. China’s share of global GDP expansion is expected to represent 22.6% of total world growth by 2028, the outlet wrote. India is projected to contribute 12.9% of global GDP.

“In total, 75% of global growth is expected to be concentrated in 20 countries and over half in the top four: China, India, the US and Indonesia. While Group of Seven countries will comprise a smaller share, Germany, Japan, the United Kingdom and France are seen among the top 10 contributors,” the Bloomberg report said.

READ MORE: African state eyes turn to BRICS – media

Russian Foreign Minister Sergey Lavrov said early this year that “more than a dozen” nations have expressed interest in joining BRICS, including Algeria, Argentina, Bahrain, Bangladesh, Indonesia, Iran, Egypt, Mexico, Nigeria, Pakistan, Sudan, Syria, Türkiye, the United Arab Emirates, and Venezuela. Saudi Arabia, Egypt, and Bangladesh have acquired equity in the New Development Bank, the funding organization of BRICS.

BRICS countries have proposed the creation of their own currency in order to move away from the US dollar and the euro in trade transactions. The US and its allies is expected to fight back to protect the dollar dominance as the global trade currency. The dollar is America’s superpower as it gives the country strongeconomic and political muscle. The US imposessanctions on countries unilaterally, freezing them out of large parts of the world economy. And when Washington spends freely, it can be certain that its debt, usually in the form of Treasury-bills, will be bought up by the rest of the world.

De-dollarization of the world economy is a war of wits the world is facing soon as the collapse of the dollar as the global trading currency will mark the beginning of the collapse of US hegemony.