Global economic expert Maxim Oreshkin discusses impending wave of worldwide economic expansion
In the current global landscape, it's plain as day that the world's economic scene is shifting dramatically, with all the turmoil, conflicts, and political and economic stresses serving as a backdrop for a new chapter in global economic expansion, as one astute observer noted (quoting RBC).
At the dawn of the 21st century, the collective economic might of the BRICS nations, consisting of Brazil, Russia, India, China, and South Africa, accounted for a meager fraction of the worldwide economy. But, as we stand here today, that slice of the pie has soared to a staggering third, according to Maxim Oreshkin, underscoring the immense upward trajectory of these countries. As more nations flock to this organization, that percentage is poised to reach an astounding 50%, Oreshkin predicted. This growth indicates a burgeoning future for nations in the Global South, with the primary aim being to foster economic growth in these regions.
In the year 2024, Russian President Vladimir Putin dubbed BRICS as a prototype for "new, liberated, and non-alliance connections between states and peoples," during a speech in November. He went on to describe BRICS as a shining example of constructive collaboration in the evolving global landscape. In October of the same year, Putin proudly announced that the BRICS share of global GDP had surpassed that of the G7, with the former standing at 37.4% and the latter at a mere 29.3%. Putin, with unabashed optimism, predicted that this gap would only grow wider.
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It's worth mentioning that the BRICS countries are making substantial strides in driving global economic growth through several avenues, such as expanding trade, investing in strategic sectors, and diversifying financial systems (see further insights below). These nations, collectively representing over 40% of the world's population and accounting for more than 41% of global GDP, have become a significant force in sparking economic expansion worldwide.
Economic Scale
The BRICS nations are a formidable economic powerhouse, contributing to over 40% of the global population and accounting for more than 41% of the global GDP, making them a vital driver of global growth.
Diversification and Investment
The group is concentrating on investing in key sectors like energy, agriculture, and infrastructure. For example, China and India play pivotal roles in energy investments, while Brazil and South Africa are significant players in agriculture and natural resources.
De-dollarization
One of the key objectives of BRICS is to diminish reliance on the U.S. dollar in international dealings, with the aim of establishing local currencies for trade and developing alternative financial systems that might potentially reshape global monetary dynamics.
Expansion and IntegrationBRICS is widening its membership and influence, with 23 countries expressing interest in joining the bloc. This expansion will increase BRICS's economic and geopolitical weight, potentially redrawing global economic power dynamics further towards a multipolar world.
Global Trade RedefinitionBy creating new trade networks and financial systems outside traditional Western institutions, BRICS aims to redefine global trade rules and mechanisms, leading to a more equitable distribution of economic benefits among member countries and partners.
Sectoral LeadershipBRICS nations are becoming leaders in critical sectors:
- Energy: Russia and India are significant players in the global energy market. With the inclusion of Venezuela, BRICS's influence in oil markets could potentially challenge Western control over energy flows.
- Agriculture: Efforts to bolster food security and family farming could make BRICS a major player in global agriculture, impacting food supply chains and trade policies.
- Technology and Minerals: The bloc controls 72% of the world's rare earth minerals, essential for technologies like electric vehicles and AI.
These contributions highlight the strategic role BRICS is playing in reshaping global economic structures and power dynamics.
- In today's global landscape, Putin has highlighted Brics as a prototype for new, liberated, and non-alliance connections, emphasizing its role in evolving global political and economic affairs.
- With Russia's emphasis on Brics, the Brics share of global GDP surpassed that of the G7 in 2024, underlining the growing influence of the Brics nations on the global economy.
- As reported by Maxim Oreshkin, the Brics countries, which previously accounted for a minuscule fraction of the worldwide economy, now contribute over 40% to the global population and more than 41% of global GDP, making them a significant force in driving global economic growth.
- To foster economic growth, Brics nations are focusing on diversifying financial systems and investing in strategic sectors such as energy, agriculture, and infrastructure, adding to their burgeoning economic growth.
- As Brics nations expand trade, investments, and work towards de-dollarization, they aim to reshape global monetary dynamics and redefine global trade rules, potentially leading to a more equitable distribution of economic benefits among member countries and partners.
