New Kids On The BRICS: What The Bloc’s Expansion Means For The Global Geopolitical And Economic Landscape

The BRICS nations are coming of age.

At its annual summit in Johannesburg this week, the bloc of five emerging countries—Brazil, Russia, India, China and South Africa—announced plans to expand for the first time since 2010. On January 1, 2024, the BRICS will welcome six new members: Saudi Arabia, Argentina, Egypt, Ethiopia, Iran and the United Arab Emirates (UAE).

BRICS Invites New Members

The expansion will further establish the group as a counterbalance to the G7’s global influence, catapulting BRICS’ share of global GDP to 36% as well as covering nearly half of the world’s population.

With dozens more nations expressing interest in joining the bloc, the BRICS are clearly positioning themselves for a multipolar world, one that is not dominated by the U.S. and other members of the West.

I expect the BRICS’ rise to create both opportunities and challenges for investors. Understanding the geopolitical, economic and regulatory landscape will be critical for navigating this environment successfully.