- BRICS countries have surpassed the G7 nations in economic growth.
- The BRICS countries currently account for roughly 31.5% of the global GDP.
- G7 countries have seen a reduction of about 30 percent in their GDP.
The BRICS countries, comprising Brazil, Russia, India, China, and South Africa, have surpassed the G7 nations in economic might. When purchasing power parity is considered, these nations hold the top spot and form the largest global gross domestic product (GDP) bloc.
Compared to G7 countries, which include Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union (E.U.), have seen a reduction of about 30% in their GDP. Whereas, BRICS countries are currently responsible for roughly 31.5% of the global GDP as reported by sources who are familiar with the matter.
This sudden growth of the GDP of BRICS countries is highly contributed by the Chinese state, which has done well in the field of the global economy. According to reports by the International Monetary Fund (IMF), China surpassed the U.S. as the world’s leading economic nation 2015, with a GDP PPP approximated $30 trillion.
The United States claimed the second spot on the global economic stage, with a staggering figure of $25 trillion. Meanwhile, other nations in the BRICS group also demonstrate a solid dedication to expanding their economies. It is expected that this trend will continue in the foreseeable future.
The BRICS nations are expected to maintain their current dominance in global GDP PPP. And, they have received support from new members like Saudi Arabia, Egypt, and Bangladesh. Correspondingly, this move by BRICS signifies their commitment to advancing global economic growth.
Also, the possibility of a new global order has been discussed after Russia, a member of BRICS, called for the other member countries within the block to reduce their dependence on the U.S. currency. This development has sparked discussions about the potential implications for the current global economic order.
Projection of the Gap Between BRICS and G7
Moreover, the graphic created by Richard Dias from Acorn Macro Consulting illustrates the contrasting development of G7 and BRICS nations. The analysis suggests that the BRICS group is set to strengthen its position as a leading economic group worldwide. While the G7’s growth is expected to lag behind that of BRICS. Moreover, the graphic highlights the widening disparity between the two groups over time.