BRICS+ Set To Surpass G7 In Global Merchandise Exports By 2026: EY Report

New Delhi, Nov 1 (KNN) The BRICS+ alliance is experiencing a significant transformation in its global economic influence, with projections indicating it will overtake the G7 group in merchandise exports by 2026, according to a recent EY India Economy Watch report.

The group's share in global merchandise exports has witnessed a substantial increase from 10.

7 percent in 2000 to 23.

3 percent in 2023, while G7's share has declined from 45.

1 percent to 28.

9 percent during the same period.

A parallel trend is observed in global merchandise imports, where BRICS+ has increased its share from 7.

2 percent to 18.

9 percent between 2000 and 2023, while G7's portion has decreased from 49.

8 percent to 33.

7 percent.

The rest of the world has maintained relatively stable shares in both exports and imports, hovering around 47 percent.

China remains the dominant force within BRICS+, contributing 62.

5 percent of the group's exports in 2023, a significant increase from 36.

1 percent in 2000.

India has also emerged as a key player, accounting for 7.

9 percent of BRICS+ exports.

Both nations hold prominent positions globally in terms of purchasing power parity, ranking first and third respectively.

The alliance has made notable strides in high-technology exports, with its share rising from 5.

0 percent in 2000 to 32.

8 percent in 2022.

This growth reflects the group's strategic pivot toward technology-intensive products and its increasing prominence in global high-tech markets.

In the currency domain, BRICS+ is witnessing evolving dynamics.

While the Chinese Yuan has maintained relative stability with slight appreciation, the Indian Rupee has experienced depreciation since 2018.

Concurrently, the US dollar's share as a global reserve currency has declined from 71.

5 percent in 2000 to 58.

2 percent in 2024, suggesting a shift toward a more diverse currency landscape.

The group is actively developing alternative financial infrastructure, including a platform for international trade and investment transactions that could serve as a cost-effective alternative to SWIFT.

Additionally, efforts are underway to establish a trade and reserve currency backed by gold and select commodities, potentially reshaping the global economic order.

(KNN Bureau).