Economy to energy: Expanded BRICS set for bigger share of global pies

By Gokhan Ergocun

ISTANBUL (AA) – BRICS has officially invited Saudi Arabia, UAE, Egypt, Iran, Argentina and Ethiopia to become its new full-time members, expanding from five to 11 states.

The original members – Brazil, Russia, India, China and South Africa – account for around 32.1% of the global economy.

According to the International Monetary Fund (IMF), the expanded bloc will have a share of 37.3% in the world’s gross domestic product (GDP) next year, 37.7% in 2025 and 38.5% in 2028.

The EU currently accounts for 14.5% and the G-7 nations – Canada, France, Germany, Italy, Japan, UK and US – have 29.9%.

In 2028, the EU and G-7’s shares are expected to drop to 13.7% and 27.7%, respectively.

When Brazil, Russia, India and China first came together in 2001, they accounted for 18.75% of the global economy, while the G-7’s share was 43% and the EU had 20%.

In 2010, when South Africa joined the bloc, its share increased to 26.55%.

In the 22 years since its establishment, BRIC’s piece in the global economic pie has increased by over 70%.

- Guns, gold and oil

The G-7 nations are home to over 800 million people, a figure dwarfed by the five-state BRICS’ population count of some 3.2 billion.

That will grow by at least 400 million with the six new members and the expanded BRICS will account for 44.4% of the world population.

When it comes to gold, BRICS nations have some 5,493 tons, while the G-7’s reserves stand at 17,527 tons, according to the World Gold Council.

Among G-7 countries, the US and Canada’s share in global oil production is at 20% and 6%, respectively, while together Russia, Brazil and China account for 21%, according to data from the US Energy Information Agency.

With the inclusion of major producers Saudi Arabia, UAE and Iran, BRICS will have a share of 41% in global oil production.

In natural gas output, the US leads the entire world, while Russia, Iran and China are among the top five.

On the military side, the G-7 has two of the world’s top 10 powers in the US and UK, while BRICS has three among the top five: China, Russia and India.

In geographical reach, the current BRICS members cover an area of 38.3 million square kilometers on three continents, while G-7 nations are at around 19.9 million square kilometers.

With its six new members, the total geographical area of BRICS nations will increase by 8.7 million square kilometers.

Another key aspect of the bloc’s expansion is its increased presence in Africa, the Middle East and Latin America, and the fact that it will now have three Muslim-majority countries within its ranks.