BRICS+6 Expansion Empact!

The Argentine Republic, the Arab Republic of Egypt, the Federal Democratic Republic of Ethiopia, the Islamic Republic of Iran, the Kingdom of Saudi Arabia and the United Arab Emirates.

According to an analysis, the proposed addition of Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates as new members to the existing BRICS group (Brazil, Russia, India, China, and South Africa) will increase the BRICS' global GDP share from 26% to 30%, and their population share to 46%. This expansion was announced during the last BRICS summit in Johannesburg and will be effective from January 1, 2024.

As a result of this expansion, China's share of the BRICS' GDP will decrease from 70% to 62%, India's from 13% to 12%, South Africa's will decrease by 50% to 1%, and Russia's share will decrease by 7%. Brazil's stake will remain unchanged.

Saudi Arabia will have the largest economy among the new members, contributing 4% of the group's GDP, while Argentina, the United Arab Emirates, Egypt, and Iran will each contribute 2%. Ethiopia's entry will have minimal effect on the economy.

The combined GDP of the BRICS+6 economies will increase by 11%, reaching 4% of the global GDP in 2022, according to Soumya Kanti Ghosh, chief economist at State Bank of India.
Even with the new members, China and India will still account for 74% of the bloc's total GDP, down from 83% of the pre-expansion economy.

The addition of the six new members will also significantly impact global oil production share, rising from 18% to 40%, and oil consumption share, climbing from 27% to 36%. Additionally, their portion of the world's foreign exchange reserves will increase to 45%, and their shares in global merchandise trade and services trade will expand to 25% and 15%, respectively.

These changes in the BRICS+6's composition will have a notable impact on the global economic landscape, particularly in the realm of oil production and trade.

Furthermore, this expansion is expected to have wide-ranging implications beyond the economic landscape. With the addition of these six new members, the geopolitical influence of the BRICS+6 group is likely to grow substantially.

The increased share of global GDP, foreign exchange reserves, and trade presence will give the BRICS+6 greater leverage in international negotiations and decision-making processes. Their collective weight in global affairs, particularly in forums like the G20, could increase significantly.

Additionally, the shift in the oil equation, with the BRICS+6 accounting for a larger share of both production and consumption, could have far-reaching consequences for global energy markets, affecting oil prices and potentially reshaping the dynamics of the oil industry.

As the BRICS+6 group takes shape and solidifies its position on the world stage, it will be interesting to observe how these changes influence international relations, trade agreements, and global economic dynamics in the years to come.