BRICS emerges as a growing force reshaping the global economy

10:26

By: Azzat Manal

BRICS emerges as a growing force reshaping the global economy

The BRICS group has become an increasingly influential platform in international affairs as geopolitical and economic changes reshape the global balance of power. Originally conceived as a way to describe the rise of major emerging economies, the grouping has gradually evolved into a political and economic forum seeking a greater role for the Global South in international decision-making.

The term BRIC was coined in 2001 by British economist Jim O’Neill, then chief economist at Goldman Sachs. His analysis identified Brazil, Russia, India and China as rapidly developing economies with the potential to become major drivers of global growth in the decades ahead. The concept later moved beyond economic analysis and became the basis for political cooperation among the four countries.

In 2006, the foreign ministers of Brazil, Russia, India and China began formal coordination on the sidelines of the United Nations General Assembly in New York. South Africa joined the group in 2011, turning BRIC into BRICS and expanding its political and economic reach.

The grouping took another major step in 2009, when the first BRICS summit was held in Yekaterinburg, Russia. The leaders discussed the global economic situation and called for reforms to international financial institutions, including the International Monetary Fund and the World Bank.

A further milestone came in 2014 with the creation of the New Development Bank during the BRICS summit in Fortaleza, Brazil. With an initial authorized capital of $100 billion, the institution was designed to finance infrastructure and sustainable development projects in member and other emerging economies, reinforcing the group’s ambition to develop financial mechanisms outside traditional Western-led institutions.

BRICS expanded again from 2024, with Egypt, the United Arab Emirates, Iran and Ethiopia joining the group, while Indonesia subsequently became a member. The enlargement significantly increased the bloc’s geographical reach and economic weight, strengthening its position as a platform representing a broader range of emerging and developing economies.

The 2024 BRICS summit in Kazan, Russia, was particularly significant as the first major gathering following the expansion. Leaders discussed economic cooperation, greater use of national currencies in trade and financial settlements, investment, global governance reform and a range of international issues.

The group’s growing importance is largely linked to the combined economic and demographic weight of its members. BRICS countries account for more than 40% of the world’s population and represent a substantial share of global economic output and trade. Their collective energy resources also give the group considerable importance in international commodity markets.

On a purchasing power parity basis, BRICS has increasingly surpassed the G7 in terms of its combined share of global output. According to International Monetary Fund estimates cited in the source material, the expanded grouping accounted for around 35% of global GDP on a purchasing power parity basis in 2025, compared with approximately 30% for the G7.

This shift reflects a broader transformation in the global economy, with a growing share of economic activity concentrated in emerging markets across Asia, Africa, Latin America and the Middle East. BRICS members have sought to use their combined weight to push for reforms to international institutions and greater representation for developing countries.

Reducing dependence on the U.S. dollar has also become an important area of discussion. BRICS members have explored expanding trade settlements in national currencies, strengthening financial cooperation and improving cross-border payment mechanisms. However, the group has not established a common currency, and significant differences remain among its members over economic policies, geopolitical priorities and financial systems.

The grouping is also seeking closer cooperation in technology, investment, energy and infrastructure. The New Development Bank remains one of its most visible institutions, while discussions over alternative payment arrangements reflect efforts to make international trade less dependent on a small number of financial centres and currencies.

India holds the BRICS chairmanship in 2026 and is preparing to host the group’s next summit in New Delhi on September 12 and 13. The meeting is expected to bring together leaders from the expanded membership as the group continues to debate its future role in the international economic and political system.

BRICS still faces significant challenges, including differences between its members, varying economic structures and competing national interests. Nevertheless, its expansion and growing share of global economic activity underline the changing nature of the international order and the increasing influence of emerging economies in shaping global economic governance.