The recent addition of six new members to the BRICS group—Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE)—is expected to collectively contribute only 11% to the GDP of this emerging economies grouping.
Among the new members, Saudi Arabia stands out with the highest GDP contribution of 4%. Following closely are Argentina, the UAE, and Egypt, each contributing 2%. Iran adds 1%, while Ethiopia's impact is minimal.
The inclusion of these new members will boost BRICS' share in global GDP from 26% to 30%. Additionally, the population share will increase to an impressive 46%.
As the group expands, there will be notable shifts in GDP contributions from existing members. China's current contribution of 70% to BRICS' GDP will decrease to 62%. India will see a slight reduction from 13% to 12%, while Russia's share will drop from 8% to 7%. Brazil's contribution remains steady at 7%, but South Africa's will be halved from 2% to 1%.
The UAE, notable among the new members, recorded a bilateral trade of ₹6.8 trillion in FY23. This figure highlights its significant economic activity and potential within the BRICS framework.
The decision to expand BRICS, effective from January 1, 2024, was officially announced during the recent BRICS summit. This expansion is anticipated to lead to a diversification of contributions. However, Brazil's unchanged share remains a key point of interest.
In summary, the addition of new members to the BRICS group will introduce varied contributions to the GDP. This change will significantly influence the overall global share of the grouping in terms of both economic output and population.
Q1. What is the anticipated GDP contribution of new BRICS members?
Answer: The six new members of BRICS are expected to contribute 11% to the group's GDP, with Saudi Arabia leading at 4%.
Q2. How will BRICS' global GDP share change with the new members?
Answer: With the inclusion of new members, BRICS' global GDP share is projected to rise from 26% to 30%.
Q3. What will happen to China's contribution in BRICS post-expansion?
Answer: China's contribution will decrease from 70% to 62% after the expansion of BRICS in 2024.
Q4. Which new BRICS member has the highest bilateral trade?
Answer: The UAE stands out with a significant bilateral trade of ₹6.8 trillion in FY23, indicating its economic importance.
Q5. When will the new BRICS membership take effect?
Answer: The expansion of BRICS will become effective from January 1, 2024, as announced at the recent summit.
Question 1: What is the GDP contribution percentage of Saudi Arabia within the new BRICS members?
A) 2%
B) 4%
C) 1%
D) 3%
Correct Answer: B
Question 2: What will BRICS' global GDP share increase to after the new member inclusion?
A) 26%
B) 30%
C) 32%
D) 28%
Correct Answer: B
Question 3: Which country will have a reduced GDP share from 70% to 62% in BRICS?
A) India
B) Russia
C) China
D) Brazil
Correct Answer: C
Question 4: What is the bilateral trade of the UAE for FY23?
A) ₹5 trillion
B) ₹6.8 trillion
C) ₹7 trillion
D) ₹8 trillion
Correct Answer: B
Question 5: When did the decision for BRICS expansion get announced?
A) January 1, 2024
B) At the last summit
C) 2023
D) 2025
Correct Answer: B
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