BRICS+ group set to overtake G7 in global trade by 2026, EY India eports

The BRICS+ coalition, comprising nations like India, China, and Russia, is on track to surpass the G7 in global merchandise trade by 2026, according to a recent report by EY India in its latest edition of EY Economy Watch.Since 2000, the BRICS+ share of global merchandise exports has surged from 10.7 per cent to 23.3 per cent in 2023, a substantial increase of 12.6 percentage points. Conversely, the G7's share has plummeted from 45.1 per cent to 28.9 per cent, reflecting a decline of 16.2 percentage points over the same period. The report indicates that the rest of the world’s share has remained relatively stable, rising slightly from 44.2 per cent to 47.9 per cent.A similar trend is evident in merchandise imports. The BRICS+ share grew from 7.2per cent in 2000 to 18.9 per cent in 2023, while the G7's share dropped from 49.8 per cent to 33.7 per cent. Once again, the rest of the world's share increased marginally, from 43.0 per cent to 47.4 per cent.D K Srivastava, Chief Policy Advisor at EY India, noted, "Given the current trends and the potential for new members to join the BRICS+ group, it is likely their share in global merchandise exports will overtake that of the G7 by 2026." This shift may challenge the G7's longstanding dominance in global economic governance.As geopolitical tensions rise, BRICS+ nations are making efforts to coordinate their policies, which could lead to a reduction in the reliance on the US dollar for global trade and foreign exchange reserves. The EY report highlights that the Yuan has remained stable, while the Indian Rupee has faced depreciation since 2018.Moreover, the BRICS+ group's share of global high-tech exports has significantly increased from 5.0 per cent in 2000 to 32.8 per cent in 2022, indicating a strategic pivot toward technology-intensive products.The report suggests a potential shift toward a multipolar currency framework, with the US dollar's share as a global reserve currency declining from 71.5 per cent in 2000 to 58.2 per cent in 2024.As BRICS+ countries explore alternatives to the SWIFT platform for international transactions and develop a trade and reserve currency backed by gold and other commodities, the global economic landscape may be on the brink of a transformative change.

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BRICS+ group set to overtake G7 in global trade by 2026, EY India eports

The report suggests a potential shift toward a multipolar currency framework, with the US dollar's share as a global reserve currency declining

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