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Graphic Truth: G7 vs BRICS, who has more economic clout?
The G7 countries – the US, UK, Canada, Germany, France, Italy and Japan – will convene this weekend in Kananaskis, a rural town in the mountains of Alberta, Canada. High on the meeting’s agenda are tariffs, artificial intelligence, and international security, with special focus on Russian sanctions and Israel’s recent attacks on Iran.
While the G7 was originally formed as an informal grouping of the world’s wealthiest democracies, the BRICS – composed of Brazil, Russia, India, China, South Africa – have sought to challenge their dominance of the global agenda.
Here’s a look at how the share of the global economy held by G7 and BRICS nations has evolved over time.
Polish Prime Minister Donald Tusk reacts after a vote of confidence for his center-left coalition government, in Warsaw, Poland, June 11, 2025.
Hard Numbers: Polish PM’s gamble pays off, UK sanctions Israeli government ministers, Taiwan indicts Chinese “spies”, and more
33: Poland’s Prime Minister Donald Tusk survived a no-confidence measure on Wednesday by a margin of 33 votes in the 460 seat legislature. Tusk had called the vote himself in a bid to reinforce his mandate after an ally of his lost the presidential election to a rightwing challenger late last month.
4: Taiwanese prosecutors indicted four former members of the ruling Democratic Progressive Party over allegations of spying for China. One of the alleged suspects worked as an assistant to former Foreign Minister Joseph Wu, who is now the secretary-general of Taiwan’s National Security Council.
0.1%: The US’ annual inflation index rose by 0.1 points from 2.3% last month—an early indication that Trump’s tariffs are having only a modest impact on consumer prices so far.
5: Five western countries – Australia, Canada, New Zealand, Norway, and the UK – imposed sanctions on two of Israel’s far-right ministers on Tuesday, accusing Itamar Ben-Gvir and Bezalel Smotrich of “inciting extremist violence” in the West Bank and denying essential aid to Palestinians in Gaza. Israel’s foreign minister Gideon Saar pledged a response to the “outrageous” move.
40%: US National Institutes of Health Director Dr. Jay Bhattacharyadefended his agency during a Senate hearing on Tuesday after the Trump administration proposed a 40% budget cut to it. Sen. Susan Collins (R-ME) slammed the proposed cuts, which would lower the NIH’s total budget to $27.5 billion for the next fiscal year.
1,200: Russia and Ukraine began a major prisoner swap earlier this week, with each side expected to hand over at least 1,200 prisoners. However, prospects for a ceasefire remain distant: Kyiv and Moscow have exchanged ferocious aerial assaults in recent days.
View of what state media KCNA reported was a test-firing of the weapons system of the new "Choe Hyon-class" warship, in this picture released on April 30, 2025, by the Korean Central News Agency.
The new global arms race: who’s buying, who’s selling, what’s at stake
Welcome to the new global arms race: faster, smarter, more dangerous and more expensive than ever. In 2024, world military spending surged toa record $2.7 trillion, the steepest annual increase since the Cold War's end, driven largely by European, Asian and Middle Eastern nations.
Who's buying?
Faced with threats from Russia, Europe has ramped up defense budgets, with Poland's spending growing by 31% to $38 billion and Sweden’s by 34% to $12 billion in its first year of NATO membership. Germany increased military expenditure by 28% to $88.5 billion, making it the fourth-largest spender globally and rearming the nation that precipitated the two major world wars of the last century.
In the Middle East, Israel's military spending soared by 65% per cent to $46.5 billion, the largest annual rise since 1967, amid its war with Hamas in Gaza and conflict with Hezbollah in South Lebanon. In Asia, China spent 7% more on its military in 2024, adding an estimated $314 billion, raising fears of an imminent operation against Taiwan, which boosted its military spending by 1.8% in 2024 to $16.5 billion. Fellow Asia-Pacific power Japan saw its military budget rise by 21% to $55.3 billion, its largest annual increase since 1952.
Who's selling?
Traditional arms exporters like the United States, France, Russia, China, and Germany continue to dominate the market. However, emerging players such as India, Turkey, and Israel are increasing their share. Notably,Israel's defense exports reached a record $14.8 billion in 2024, with Europe accounting for 54% of sales, up from 35% the previous year.
What’s on the wish list?
Today’s arms race is not just about quantity, but technology. Nations are investing heavily in next-generation weapons, including drones, hypersonic missiles, artificial intelligence, cyber capabilities, and space-based systems.
In the US, President Donald Trump’s desire for a “Golden Dome” missile defence system akin to Israel’s “Iron Dome” would add $175 billion to Washington’s arms budget over the next three years. It would also require the cooperation of neighboring Canada, at a price of $61 billion, or 51st statehood – which Prime Minister Mark Carney has made clear is not on the table.
Russia’s recent announcement that it is equipping Belarus withantiballistic Oreshnik missiles capable of striking all of Europe has upped the need for missile defence systems on the continent. The United States, China, France, and Germany have also invested in electromagnetic railguns that shoot projectiles without gunpowder; last year, Japan became the first country to test one at sea.
Strategic implications
All this warmongering could deal a death blow to arms control agreements. The New START treaty between the US and Russia is set to expire in February 2026, withlittle hope for renewal. It could also see new theatres of war emerge: in the Asia Pacific around Taiwan, in Europe in countries bordering Ukraine, and in cyberspace, through the use of disinformation and propaganda campaigns. And all that military spending will put a dent in national budgets, possibly requiring cuts to social benefits, increased debt, or fewer government services - which won’t make voters happy, and could contribute to political instability.
What We’re Watching: Trump and Musk feud, Russia retaliates, Bangladesh sets elections
Will Trump and Musk kiss and make up?
The extraordinary public feud between US President Donald Trump and his former government efficiency czar Elon Musk continues. Despite late night reports that the two alphas were seeking detente, Trump was reportedly unwilling to engage with Musk again on Friday morning. The potential break-up risks fracturing the MAGA coalition and could affect Trump’s efforts to pass his “big beautiful” spending agenda (which Musk has called “an abomination.”) And if things get really ugly, could Musk actually start a third party?
Russia responds “very strongly”
Russia haspounded Ukraine with airstrikes over the past 24 hours, in response to Kyiv’s recent drone attacks which crippled a third of Russia’s strategic bombers. The ferocious exchange comes after Ukraine-Russia talks earlier this month went nowhere: Kyiv wants an unconditional ceasefire, Russia wants only a partial one. Trump, who spoke with Putin this week and warned that Russia would respond “very strongly”, said yesterday the two sides, already at full-scale war since 2022, may “need to fight for a while.”
Bangladesh to hold elections next spring.
Bangladesh, a South Asian country of 173 million people, will hold national elections in April 2026, the country’s de facto prime minister, Muhammad Yunus, announced on Friday. The textile-exporting nation has been without an elected leader since a student uprising last August forced then-Prime Minister Sheikh Hasina to flee to India. The opposition Bangladesh Nationalist Party had pushed for an election this December, but Yunus said he wanted to ensure a free and fair electoral process before sending voters to the polls.
Ukraine drone strikes deep inside Russia
In this episode of Europe in :60, Carl Bildt provides an update on the ongoing war between Russia and Ukraine.
Bildt highlights Ukraine’s recent drone strikes on Russian bomber bases that was “beyond what you see in James Bond movies.” The bold Ukrainian operation comes amid a shifting geopolitical landscape that may be encouraging Russia to double down. Bildt notes that Russia’s maximalist demands and Trump’s apparent withdrawal of pressure on Putin have emboldened Moscow to continue military operations. Bildt warns, “we are facing further tragic months of war in the East of Europe."
Ukraine’s drone strike shocks Russia and redefines modern warfare
Ukraine’s unprecedented drone strike deep inside Russian territory destroyed up to 20 aircraft, including nuclear-capable bombers and early warning systems.
Ian Bremmer calls it “one of the most extraordinary asymmetric attacks in modern warfare,” raising urgent questions about Russia’s nuclear deterrence and the global balance of power.
Powered by a homegrown drone program and diaspora technologists, Ukraine’s low-cost innovation dealt a massive blow to Moscow’s high-value assets. Ian draws parallels to Israel’s strikes on Hezbollah, showing how modern warfare is being redefined.
“The dangers are not just to the Ukrainian people—the dangers are increasingly global,” warns Ian.
A view of the Business School campus of Harvard University in Cambridge, Massachusetts, USA, on April 15, 2025.
HARD NUMBERS: Trump tries to ban foreign students at Harvard, Pensioners revolt in Argentina, Escaped bird ponders long flight home & more
7,000: The White House has scrapped Harvard University’s authorization to enroll foreign students, putting the school’s roughly 7,000 foreigners at risk of having to transfer elsewhere or go home. The Trump administration accuses Harvard of fostering antisemitism and violence, and of “coordinating with the Chinese Communist Party.” Harvard plans to appeal the move, which could affect a major source of income, as foreigners typically pay full tuition.
331: Dozens of people were injured in a protest by pensioners and activists outside the Argentine Congress on Wednesday. At issue are demands to raise the current pension level of $331 per month. President Javier Milei has opposed pension hikes as part of his “chainsaw” austerity drive.
81: US Sen. Lindsey Graham (R-SC) says he has gathered 81 co-sponsors for a bill that would impose a draconian 500% tariff on any countries that buy Russian energy. The biggest of those buyers is, of course, China. Trump reportedly told European leaders on Monday that Russian President Vladimir Putin isn’t ready to end the war, although the White House has disputed that account.
344%: The murder of two Israeli embassy staffers in Washington, D.C., has shined another light on the burgeoning wave of antisemitism in the United States and beyond. Antisemitic incidents across the US have increased by 344% in the last five years. Australia, Belgium and France have experienced similar surges, too.
27: A top Maoist leader was among 27 rebels killed by security forces in the central Indian state of Chhattisgarh on Wednesday, part of a government crackdown against this far-left insurgency. Nambala Keshava Rao was the highest profile rebel killed in decades. New Delhi has said it wants to end the insurgency in Chhattisgarh entirely by March 2026.
9,000: The Great Escape, bird edition: A juvenile East African crowned crane, known for its distinctive crown of golden feathers, broke out of a zoo in Washington state. If the bird is planning to return to its eponymous home, it will have to travel nearly 9,000 miles.
Trump’s call with Putin fails to deliver Ukraine ceasefire
Ian's takeaways:
On Trump’s Ukraine policy: “Absent a ceasefire, there is no breakthrough deal between Trump and Putin. None of that’s going to happen.”
On Western backlash over Gaza: “At the end of the day, unless Trump is going to squeeze Israel hard and say, 'Suspend intelligence and aid,' the way he did with the Ukrainians, I have a hard time seeing the Israelis in any way backing down from what is at this point an completely unconscionable military intervention and ethnic cleansing across the board in Gaza."
On tech power vs. government: “In the US digital space, it’s the tech CEOs who hold the power and the government isn’t ready for what’s coming.”