In what may seem like a shocking surprise, economic data showed that the economy of the « BRICS » group is superior to that of the « G7 », and talks about China’s superiority specifically in its gross domestic product.
The data showed that the « G7 », 30 years ago, was 2.5 times larger than the BRICS, in terms of GDP, while now the BRICS has surpassed the former colonial powers of the G7.
These data may explain what these powers are trying to stop, China, because they make up the bulk of the BRICS economy, as China is equivalent in terms of US dollar GDP to 6 of the G7 countries. Analysts pointed out.
In other words, China’s gross domestic product ($17.7 trillion) is equivalent to that of Germany ($4.26 trillion), Japan ($4.94 trillion), the UK ($3.13 trillion), France ($2.95 trillion), Italy ($2.1 trillion) and Canada ($1.98 trillion) combined.
Other interesting data, on international powers’ share of global GDP since 1980, show that the US has had the same share since 1980: no loss, no gain.
Developing countries also remained unchanged, while Europe, the Organization for Co-operation and Development, and developed countries, except for the US, are the biggest losers. As for China, its share grew tenfold, to become the biggest gainer.
The BRICS currency can shake the dominance of the dollar and maybe the moment of de-dollarization is finally here. Said Joseph W. Sullivan, senior adviser at Lindsey Group, and economist at the White House Council of Economic Advisers during the administration of former U.S. President Donald Trump.
Russia and China take it seriously, Sullivan confirmed. Speaking to Foreign Policy, Sullivan said that in New Delhi, Alexander Babakov, Vice President of the Russian State Duma, said that « Russia is now leading the development of a new currency, which will be used for cross-border trade by the BRICS countries, Brazil, Russia, India, China, and South Africa. »
Based on the economy, at least, the prospects for success of the BRICS currency still possible, according to Foreign Policy, and although many practical questions remain unanswered, such a currency could expel the United States dollar as a reserve currency for BRICS members, shaking the dollar from its throne.
Naledi Pandor, South Africa’s Foreign Minister, had stated that the creation of a new BRICS currency would be a key item on the agenda of the upcoming BRICS Summit, in Johannesburg on August 22.