Given current trends, the EY report expects the BRICS+ group would account for over 50 per cent of global GDP in purchasing power parity (PPP) terms by 2030, both due to growth prospects of the current members and partners and induction of additional countries into the group.
As of 2024, BRICS+ countries accounted for 42.5 per cent of global GDP (in purchasing power parity terms), 54 per cent of the global population, and 27.3 per cent of global merchandise exports.
Three key BRICS initiatives — the cross-border payments platform, the New Development Bank (NDB) and the BRICS Contingent Reserve Arrangement (CRA) — are gaining strategic traction as BRICS+ economies deepen collaboration to reshape the global financial system.
These efforts are encouraging emerging economies to strengthen resilience and diversify their financial and trade frameworks, the report noted.
These milestones reflect not only the BRICS+ growing economic power but also a deepening commitment to reforming international financial and trade systems.
With the share of BRICS+ in global merchandise exports steadily increasing between 2000 and 2024 and that of G7 moderating, they are now at comparable levels.
NDB is expected to play a key role in providing accessible infrastructure financing for BRICS+ members and facilitate long-term investment flows across member nations, the report noted.
As the market exchange rates converge towards the PPP rate, India could be the largest gainer in terms of size of GDP.
The BRICS+ payments platform, built on blockchain technology, is designed to enable cross-border transactions in local currencies. This system is expected to enhance flexibility in currency use for trade among member nations.
The EY report notes that this development could foster greater financial stability, facilitate smoother trade flows and strengthen economic resilience across participating countries.
CRA offers a safety net to participating countries through currency swaps during balance of payments challenges. It enhances collective financial security and offers an added layer of support to help manage external economic pressures.
The report highlights the BRICS+ group’s focus on facilitating trade in local currencies and expanding access to development financing, supporting efforts towards a more inclusive and balanced global financial architecture.
While the group is not seeking to replace the US dollar’s role in the global economy, these initiatives aim to broaden financial options and promote a more balanced international monetary system, the report added.
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