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A Look at BRICS Expansion Numbers and Implications
BRICS | Dec 30, 2024
Image: BRICS Expansion Map, Geopolitical Economy
BRICS Expansion by Population and GDP and Global Implications
The founding members of the original BRICS Bloc that launched in 2009 was originally made up of Brazil, Russia, India and China, followed by South Africa joining in 2010. BRICS aims to nurture economic cooperation between member states, reduce reliance on Western dominated financial systems and push for a more multipolar global order. Its goals include promoting trade in local currencies, exercising control over its resource dominance, and increase power for emerging markets in global governance institutions. In 2024, BRICS added four new member countries. Now in January 2025 and as featured on Geopolitical Economy, BRICS is a major player globally and expanding with an additional 9 'partner' countries. Let's look at the numbers and trends in more detail to be understand the implications.
BRICS Members and Partners
BRICS distinguishes between members and partners based on their level of integration. This tiered approach allows BRICS to grow while aligning new members with the rollout of its strategic goals.
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- Members are fully integrated into the group, with decision-making power and formal voting rights.
- Partners are in the early stages of association participating in economic and development initiatives but without full membership status or voting privileges.
- Also, several countries have been invited to join BRICS as either a member or partner but have yet to confirm or have declined membership.
Current Members (9 countries - see RED):
- Brazil
- Russia
- India
- China
- South Africa
- Egypt (joined in 2024)
- Ethiopia (joined in 2024)
- Iran (joined in 2024)
- United Arab Emirates (joined in 2024)
New Partner Countries (as of January 2025 - see ORANGE):
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- Belarus
- Bolivia
- Cuba
- Indonesia
- Kazakhstan
- Malaysia
- Thailand
- Uganda
- Uzbekistan
Invited but Pending or Rejected (invited as member or partner - See YELLOW, AQUA, NAVY):
- Algeria (member, pending response)
- Nigeria (partner, pending response)
- Turkey/Türkiye (partner, pending response)
- Vietnam (partner, pending response)
- Argentina (initially invited as member but withdrew in 2024 under a new government)
See: Is the BRICS Alternative Currency Plan Falling Apart?
Post January 2025 expansion, there are a total of 18 BRICS and affiliated countries representing approx half of the global population and over 41% of the world’s GDP when measured by purchasing power parity (PPP).
By the Numbers
1. Population - 9 of the world's 20 most populated countries
- India and China combined account for over 2.8 billion people which is more than a third of the global population.
- Indonesia adds another 290 million people to the bloc (fourth most populated)
- Other countries with tens to hundreds of millions of people include Brazil, Russia, Ethiopia, and Egypt.
In total, BRICS member countries and affiliates represent approx. 4 billion people so the group has a massive labour force and consumer market.
2. Economic Strength
To better understand BRICS' economic power one must understand the difference between nominal GDP versus Purchasing Power Parity (PPP). Nominal GDP measures the total economic output of a country in current market prices using current exchange rates which is a good measure of global trade and investment power. A different measure, PPP GDP accounts for price differences between countries so it more closely reflects the actual purchasing power of currencies and provides a better measure of living standards and real economic productivity.
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This difference is why every day citizens may be living in a 'wealthy country' but complain about declining living standards, versus a citizen living in a 'developing economy' that feels their living standards are only improving.
- BRICS countries account for over 41% of global PPP GDP, by far surpassing the G7’s 29%. China alone contributes 19% of global PPP GDP, followed by India at 13%.
- The G7's total nominal GDP however is $40 trillion while the BRICS’ total nominal GDP is approximately $27 trillion which is reflective of the strength of Western currencies like the US dollar and higher per capital incomes.
3. Resources and Commodities
BRICS nations are global leaders in producing essential commodities:
- Energy - Five of the top 10 oil producers are in BRICS (Russia, China, Iran, UAE, and Brazil). BRICS members like Russia and Iran dominate natural gas production with Indonesia and Malaysia as significant contributors.
- Agriculture - China and India produce over 50% of the world’s rice while Brazil is a top exporter of soybeans and beef. Indonesia, Malaysia, and Thailand, new BRICS partners, account for nearly 90% of global palm oil production.
- Strategic Minerals - BRICS countries control significant reserves of iron ore, nickel, and copper which is critical for industrial and tech applications. Indonesia’s membership adds the world’s largest nickel reserves to the bloc.
Why It Matters
One of BRICS’ key goals is reducing reliance on the U.S. dollar known as de-dollarization in order to improve financial influence, although it's currently being debated how effective current anti-dollar measures are. By promoting trade in local currencies andthe potential of a shared BRICS currency, the bloc looks to challenge the West's financial dominance. This shift will have significant implications for global trade and investment.
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China is leading the global transition to renewable energy and is currently has twice as much solar and wind capacity as the rest of the world combined positioning BRICS as a major player in combating climate change.
Rise in global purchasing parity and economic power / influence of the Global South. In 1990, the G7 controlled 52% of global PPP GDP. Today, that share has dropped below 30%, while BRICS continues to grow.
Strategic Implications
- BRICS countries population exceeds 4 billion and represents massive labour and consumer markets. Too big for businesses looking to expand globally to ignore.
- The bloc has significant influence/control over critical commodities like oil, gas, and agricultural products gives BRICS strategic influence in global trade negotiations.
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- As BRICS continues to gain economic clout, it is pushing for stronger influence/representation over international governance institutions like the IMF and World Bank while advocating for a more multipolar world order.
Closing Thought
The expansion of BRICS is challenging the traditional power balance and represents a turning point in global geopolitics and economics. Western democracies and global businesses need to fully understand and adapt to this new reality, as the world reshapes into xyz.
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