The BRICS alliance—comprising Brazil, Russia, India, China, and South Africa—is expected to experience a surge in the number of millionaires over the next decade. According to a comprehensive report by Henley and Partners, these nations are poised for an 85% increase in their millionaire count, significantly outpacing the projected growth in the Group of Seven (G7) industrialized nations, set at just over 40%.
However, this remarkable wealth growth indicates the increasing financial strength of the BRICS bloc. The report also says that lately, the combined investable wealth of the BRICS countries has reached about $45 trillion, signaling a robust expansion in individual and collective financial capabilities.
Diverging paths of wealth accumulation
Within the BRICS alliance, the distribution and growth of wealth have displayed varied patterns, with China leading the charge. Over the last decade, China has seen its private wealth grow by 92%, the highest rate among the BRICS nations. This surge has positioned China as a pivotal force in the alliance’s overall economic expansion.
There are approximately 1.6 million millionaires within the BRICS nations, complemented by a notable count of 549 billionaires.
Moving forward, the trajectory of wealth growth has not been uniform across the bloc. While China has witnessed a significant increase in the number of millionaires since 2013, other key members, such as Brazil, South Africa, and Russia, have seen varying degrees of growth. Russia, in particular, faces challenges in catching up due to international sanctions related to its geopolitical actions, highlighting the complex interplay between economic performance and political factors within the BRICS group.
Investment, development, and future prospects of BRICS nations
The escalating wealth within the BRICS nations is expected to catalyze further economic development and cooperation within the bloc. The increase in investable wealth and the burgeoning millionaire population offer a fertile ground for expanding the BRICS New Development Bank’s initiatives. This financial infusion is anticipated to facilitate many projects to foster business growth and economic development across the member countries.
Such initiatives are not only poised to strengthen the internal economies of the BRICS nations but also to create more opportunities for wealth creation, thereby contributing to the alliance’s financial resilience and global influence. Despite the disparities in wealth growth among its members, the collective approach of the BRICS nations towards leveraging their increased funding for mutual development embodies a strategic effort to overcome individual challenges, including those faced by Russia amid international sanctions.
Overall, the projected surge in millionaires within the BRICS nations over the next decade showcases significant change in global wealth distribution, highlighting the bloc’s growing economic power. With China leading in wealth growth and strategic investments poised to propel further development, the BRICS alliance is set to solidify its position as a formidable force in the global economic arena, challenging the traditional dominance of the G7 countries.
