BRICS Surpasses G7
India hosts 9-nation bloc as its GDP share hits 29.1%, outpacing G7's 43.8%
The BRICS summit is set to take place in India on September 12-13, amidst a global economy with diverging inflation trends and concerns over youth unemployment in South Asia. The BRICS bloc has expanded to include new members, including Egypt, Ethiopia, Iran, the UAE, and Indonesia, in addition to the original members Brazil, Russia, India, China, and South Africa.
The expansion of the BRICS bloc has led to a significant shift in the global economic landscape. In 2010, the G7 accounted for 49.5% of global GDP, while the original BRICS members accounted for 21.7%. However, by 2026, the G7's share of global GDP had fallen to 43.8%, while the BRICS+ bloc accounted for 29.1%.
Inflation trends have also been diverging across major economies. China's retail inflation fell to 0.5% in July from 1.2% in April and May, while India's inflation rose from 2.7% in January to 4.4% in July. The US inflation rate was 3.4% in July, above the 2% target.
The BRICS summit comes at a time when youth unemployment is a major concern in South Asia. Nearly eight in 10 unemployed youth in the region were first-time entrants to the labor market. The summit provides a platform for emerging economies to coordinate on trade, investment, and finance, and seek greater representation in global institutions.
## Why it matters The rise of the BRICS+ bloc has significant implications for the global economy. As the bloc's share of global GDP continues to grow, it is likely to have a greater say in global economic decision-making. The diverging inflation trends and concerns over youth unemployment in South Asia also highlight the need for coordinated action to address these challenges. The BRICS summit provides an opportunity for member countries to discuss these issues and work towards finding solutions.
## What happens next The BRICS summit is expected to focus on issues such as trade, investment, and finance, as well as global governance and security. The summit will also provide an opportunity for member countries to discuss the expansion of the bloc and the implications for global economic decision-making. As the global economy continues to evolve, the BRICS+ bloc is likely to play an increasingly important role in shaping the global economic landscape.
