The BRICS alliance could add $3.6 trillion to its GDP with its latest expansion focus. The group is apparently eyeing Southeast Asian countries as its next members. Moreover, their entry into the group could have a massive impact on the global economy and the bloc’s position.
According to recent data, ASEAN countries generated a combined GDP of around US$3.67 trillion. This figure has been growing for several years, so the region is considering joining the alliance as it is likely to continue to expand its membership.
Read also: BRICS: Two new developing countries apply to join the alliance in 2024
BRICS wants ASEAN countries as GDP could increase
Founded in 1967, the Association of Southeast Asian Nations (AAS) is a major alliance consisting of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Since 2019, this group has seen an increase in its GDP and this trend is forecast to continue until 2029.
This could be a major advantage for the BRICS bloc, which is looking to increase its GDP by $3.67 trillion as part of its latest expansion drive. Earlier this week, Bloomberg reported that several “Asian leaders” are seeking to join BRICS. Moreover, such a move would be a major win for the group.
Malaysia and Thailand have emerged as frontrunners and announced plans to join the bloc. Moreover, the report says the region is “eager to join a group seen as a safeguard against Western-oriented institutions.”
Also read: BRICS wants to dethrone the US dollar with the help of gold and oil production
The Atlantic Council’s Geoeconomics Center recently discussed de-dollarization, noting that while it has yet to prove immensely important, it is undeniable. “A gradual democratization of the global financial landscape may be underway, giving way to a world where more local currencies can be used for international transactions,” said analyst Hung Tran.
“In such a world, the dollar would remain dominant but without its outsized influence, complemented by currencies such as the Chinese renminbi” and others. This is probably the reality that ASEAN countries are seeking. The bloc is taking measures to strengthen its currencies. Especially as they reduce the dominance of the US dollar.
BRICS is expected to grow for the second year in a row. In 2023, Iran, Egypt, Ethiopia and the United Arab Emirates (UAE) will be the first expansion countries in more than 20 years.
