New Economy
A World Made of BRICS
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In 2001, Brazil, Russia, India, China and South Africa—the emerging-markets group known as the BRICS—accounted for 19% of global gross domestic product in purchasing power parity terms. Today, including countries set to join the bloc, the share is 36%. We see this rising to 45% by 2040, more than double the weight of the Group of Seven major advanced economies.
The rapid rise of the BRICS is transforming the global economy. Members are, in general, less democratic and free-market than advanced economies, and growing economic heft could bring a profound shift in influence. Yet the bloc lacks cohesion, and that will stand in the way of ambitious objectives for some in the group—such as challenging the dominant role of the dollar.