The new additions to the BRICS countries

The so-called BRICS countries (Brazil, Russia, India, China and South Africa) have been increasing their weight as large emerging economies, with significant growth options, since the term was coined in 2001. From 2024 this select group will expand with the addition of six more members: Saudi Country, United Arab Emirates, Iran, Egypt, Ethiopia and Argentina. This will increase the number of BRICS countries from five to eleven.

Together they are set to play an important role in the world economy in a context where market fluctuations are a constant due to permanent geopolitical tensions, among other factors. This block will represent more than 42% of the world’s population and 30% of the planet’s territory, as well as 23% of gross domestic product (GDP) and 18% of world trade. Moreover, due to the presence of the United Arab Emirates and Saudi Arabia, this group will control 40% of the world’s oil production.

The impact on the global logistics network

Global supply chains, basic to the necessary functioning of the economy, will not be unaffected by this trend where the axes of influence will be increasingly fragmented around the world. In fact, the new BRICS are regions where the role of renewable energies, the production of electric vehicles, the use of Artificial Intelligence or the obtaining of minerals (such as lithium, graphite, cobalt or nickel) are very important.

Stock Logistic, as a global logistics operator, is no stranger to this trend due to its strategic importance and its impact on production and logistics distribution. Reading the markets and knowing how to adapt to each situation with flexibility is also part of the company’s roadmap.

Relocations and the end of globalisation?

Following this new movement in world geopolitics, another debate that is also emerging is whether we are facing the end of globalisation and the increase in relocations. A trend that could have an impact on logistics. However, the sector has always shown its high capacity for adaptation, resilience and professionalism, so once again this is expected to be the case.