Western economies in decline – Putin

Future growth will be concentrated in BRICS nations, the Russian president has predicted

Leading Western economies have entered an era of irreversible decline, as BRICS nations and those cooperating with the group become the main drivers of global growth, Russian President Vladimir Putin said on Thursday.

Speaking at the ‘Russian Energy Week 2024’ forum, Putin said a new multipolar development model is being formed, which will lead growth through the 21st century, “concentrated neither in Europe, nor in North America.” 

The “powerful” pillars of Western economies will make their slowdown a lengthy process, the president acknowledged, adding that they are still “losing their positions among the world economics.” 

“Major growth will be concentrated… in the BRICS nations and those countries that would like to join our group – those that see the prospect of equal partnership that takes national interests into account.” 

Back in 1992, the countries that later comprised BRICS accounted for just 16% of global GDP, but their share now surpasses that of the G7, Putin noted.

According to the World Bank, the group’s cumulative GDP based on purchasing power parity amounted to more than 35% the global total as of 2023. The G7 group of wealthy nations accounts for 29% of global GDP.

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According to the Russian leader, BRICS intends to create an effective development platform free of external interference. He pointed to the planned creation of an independent payment and settlement system to facilitate foreign trade between group members. “Friendly nations” already account for 90% of Russia’s energy exports, the president added.

Founded in 2006 by Russia, China, India, and Brazil, the organization was joined by South Africa in 2011. In 2024, the group expanded further to include Egypt, Iran, the United Arab Emirates, and Ethiopia. In mid-September, Putin said that up to 34 nations had expressed an interest in BRICS, with ongoing discussions about potential partnerships.

BRICS’ share in the global economy continued to increase last year while that of the G7 – comprising the US, UK, France, Germany, Canada, Italy and Japan – continued to shrink. Last year, it expanded by 0.6% while the G7 share slid by 0.4%, World Bank data showed.