The BRICS alliance is poised for a remarkable surge in its millionaire populace over the next decade, potentially challenging the supremacy of the G7 nations.
What unfolded: A recent report by Henley & Partners indicates that the BRICS nations—comprising Brazil, Russia, India, China, and South Africa—are anticipated to witness an 85% uptick in their millionaire demographic within the next 10 years. This surge is forecasted to mark the most substantial wealth escalation among any group of nations, as per CNBC’s coverage on Wednesday.
Andrew Amolis, a wealth analyst at New World Wealth, highlighted, “The 85% forecast for BRICS will be the highest wealth growth of any bloc or region globally,” underscoring the magnitude of the anticipated expansion.
Presently, the BRICS collective boasts a combined investable wealth of $45 trillion, with approximately 1.6 million individuals possessing investable assets exceeding one million dollars.
India is poised to lead this wealth proliferation, with a projected 110% surge in wealth per capita by 2033. Following closely are Saudi Arabia, expected to witness an expansion of over 105%, the UAE with a 95% growth, and China and Ethiopia with anticipated growths of 85% and 75%, respectively.
Significantly, the BRICS grouping has recently embraced additional members, including Egypt, Ethiopia, Iran, and the United Arab Emirates, with Saudi Arabia also on the brink of inclusion.
Dominic Volek, Managing Partner and Head of Southeast Asia at Henley & Partners, emphasized, “[BRICS is] challenging the world order and establishing itself as a powerful rival to the G7 and other international institutions,” noting the consortium’s growing influence.
Why it’s significant: The BRICS nations have been making notable economic and geopolitical advancements in recent years. The inclusion of new members, such as Egypt and the United Arab Emirates, has been perceived as a potential catalyst for the global transition away from reliance on the U.S. dollar, a phenomenon known as de-dollarization. This transition could carry substantial implications for the global financial landscape, as underscored by insights shared by a former U.S. State Department official in an article for the Atlantic Council.
Furthermore, the BRICS coalition has been actively engaged in initiatives aimed at propelling the digital economy forward, exemplified by recent collaborations between Russia and India. This concerted effort seeks to position both nations as frontrunners in information technology and the digital economy, signaling a significant stride towards technological innovation and economic advancement within the alliance.
