▪️ According to a recent report by Bloomberg, the BRICS nations are expected to outpace the G7 countries in economic growth.
▪️ The collective is expected to reach nearly 35% by 2028.
▪️ The BRICS have already surpassed the G7 nations in GDP (PPP).
By Joshua Ramos | Watcher.guru
Lusaka, April 22 – The BRICS nations are expected to outpace the G7 countries in economic growth, reaching nearly 35% in a given number of years.
This year has seen a plethora of headlines regarding the rising economic dominance of the BRICS bloc of countries. Moreover, a recent report from Bloomberg suggests that the collective will only grow economically, shifting the global power balance even more in the coming years.
Specifically, the report stated that the BRICS nations are expected to outpace the G7 countries in economic growth. Furthermore, by 2028, China is expected to be the top global growth source, leading the way for other nations in the economic bloc.
“The nation’s slice of global gross domestic product expansion is expected to represent 22.6% of total world growth through 2028,” Bloomberg noted. Subsequently, India is poised to follow closely at 12.9%, with the US contributing only 11.3%.
Ultimately, the report notes that the global economic outlook is “the weakest in more than three decades” due to macroeconomic developments. Additionally, the report expects 75% of global growth to be concentrated in just 20 countries. Importantly, half of that global growth is in the top four, of which two are within the BRICS collective: China and India.
Alternatively, the G7 nations represent a smaller share of that list. Moreover, the report notes Germany, Japan, and the UK as the top 10 contributors. Interestingly, how the BRICS collective continues to grow in the coming years will be an important development.
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And, according to a new report from U.S. Global Investors, the BRICS are piling up gold and will continue to be “huge buyers” of the precious metal for the foreseeable future.
The firm’s CEO and chief investment officer, Frank Holmes, says the mass accumulation of gold led by China aligns with the theory that the world is on a long-term path to economic bifurcation.
“If you look back at the list of net buyers [of gold], you’ll notice that three are members of the BRICS countries. I point this out because, as I’ve been sharing with you for a couple of weeks now, we may be seeing the emergence of a multipolar world, with a US-centric world on one side and a China-centric world on the other.
For the first time ever, BRICS countries’ share of the global economy has surpassed that of the G7 nations on a purchasing parity basis.”
According to a report from World Gold Council, China has added 102 tons of gold to its stockpiles since the start of the year.
And gold is the key to this potential multipolar economic future, says Holmes, as it will likely be used to back the creation of a new currency that does not utilize the US$.
“The BRICS need the precious metal to support their currencies and shift away from the US dollar, which has served as the global foreign reserve currency for about a century.
More and more global trade is now being conducted in the Chinese yuan, and there are reports that the BRICS – which could eventually include other important emerging economies such as Saudi Arabia, Iran and more – are developing their own medium for payments.”
BRICS nations are reportedly in the early stages of designing a new currency that aims to end global dependence on the US dollar.
It remains to be seen just how effective their efforts will be, with early critics like billionaire Chamath Palihapitiya stating that China will never effectively de-dollarize as long as the yuan remains pegged to the dollar.
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