Cross-border platforms and development finance to power BRICS+ growth: EY Report - World News Network

New Delhi [India], July 26 (ANI): As BRICS+ economies deepen collaboration to reshape the global financial system, three key institutional initiatives: the cross-border payments platform, the New Development Bank (NDB), and the BRICS Contingent Reserve Arrangement (CRA) are gaining strategic momentum, according to the EY Economy Watch July 2025 edition.
These efforts come at a time when global trade is navigating uncertainty from geopolitical developments, evolving supply chains, and shifting trade dynamics – encouraging emerging economies to strengthen resilience and diversify their financial and trade frameworks.
As of 2024, BRICS+ countries accounted for 42.5 per cent of global GDP (in purchasing power parity terms), 54.0 per cent of the global population, and 27.3 per cent of global merchandise exports.
These milestones reflect not only the BRICS+ growing economic power but also a deepening commitment to reforming international financial and trade systems.
Given current trends, the EY report stated that it expects that the BRICS+ group would account for more than 50 per cent of global GDP in PPP terms by 2030, both due to growth prospects the current members and partners and induction of additional countries into the group.
DK Srivastava, Chief Policy Advisor, EY India, said, “The BRICS+ institutional initiatives are gaining traction at a time when the global economic order is undergoing realignment. These mechanisms especially the payments platform and the CRA are designed to improve financial autonomy and macroeconomic stability among BRICS+ participating nations. The New Development Bank, with its potential to deliver scale and speed in development financing, is equally critical for infrastructure-led growth.”
The BRICS+ payments platform, built on blockchain technology, is designed to enable cross-border transactions in local currencies.
This system is expected to enhance flexibility in currency use for trade among member nations. The EY report notes that this development could foster greater financial stability, facilitate smoother trade flows, and strengthen economic resilience across participating countries.
The NDB is also evolving as a major financing institution for emerging markets, particularly within the BRICS+ bloc.
With a focus on competitive interest rates and development-oriented lending, the bank is well-positioned to support infrastructure growth and long-term investment flows across member nations.
Another pillar of this new financial framework is the BRICS Contingent Reserve Arrangement, which offers a safety net to participating countries through currency swaps during balance of payments challenges.
The CRA enhances collective financial security and provides an added layer of support to help manage external economic pressures.
Once these initiatives gain momentum, they may go a long way in fostering a multilateral system of global trade, global investment and global financial flows that are comparatively lower in cost and offer complementary options to existing global arrangements.
The report highlights the BRICS+ group’s focus on facilitating trade in local currencies and expanding access to development financing, supporting efforts toward a more inclusive and balanced global financial architecture.
While the group is not seeking to replace the US dollar’s role in the global economy, these initiatives aim to broaden financial options and promote a more balanced international monetary system.
As the BRICS+ grouping expands its reach, these financial innovations are expected to strengthen intra-group economic ties and support more inclusive global development.
With sustained efforts to operationalise and expand these platforms, BRICS+ could emerge as a key driver of more inclusive, resilient, and sovereign-oriented global economic growth.(ANI)

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