For the first time in history, the BRICS countries have achieved a greater GDP than the developed economies of the G7.
Brazil, Russia, India and China formed the original BRIC countries. These are countries with fast-growing economies that were thought to be important players on the economic scene in the future. That future is now, BRIC was first established in 2001 by the bank Goldman Sachs as a country group. Since 2009, they have also performed as a formal group. Its aim is to promote peace, security, development and cooperation.
For developing countries with a low credit rating, it is often difficult to borrow affordably. The BRICS can step in with the New Development Bank to help.
To encourage multilateral trade, a currency that eliminates the dollar was also proposed. China and Brazil also recently decided to trade in Brazilian Real and Chinese Yuan.
It is striking that this group is made up of very different countries, both geographically, economically and culturally. But contrary to many predictions, BRICS as a whole continues to exist.
So the weights on the international trade market are shifting. With an increasing impact of the BRICS countries. A proof that cooperation, despite differences, pays off.it turns out, because the GDP of the emerging economies exceeds that of the traditional large economies.
South Africa also joined in 2010, and is thus responsible for the ‘S’ attached to the acronym. Bangladesh, Egypt, Uruguay and the United Arab Emirates also joined the BRICS New Development Bank.
The G7 is also no longer a group of seven influential economies. In addition to Germany, France, Italy, Japan, Canada, the US and the UK, the European Union is also part of the G7, but is not a recognized member because it is not a sovereign state.