The set of countries known collectively as BRICS, have overtaken G7 nations in Global GDP (PPP), shifting the international economic power balance. Specifically, Brazil, Russia, India, China, and South Africa are now the world’s largest gross domestic product (GDP) bloc when taking purchasing power parity into account, according to data from Acorn Macro Consulting.
The UK-based research firm state that the BRICS nations now contribute 31.5% to the global GDP. Moreover, that figure propels the collective ahead of the G7, which sports a global GDP of just 30.7% comparatively.
Brazil, Russia, India, China, & South Africa (BRICS) overtake G7 nations in global GDP to become economically more powerful. pic.twitter.com/RA4AKZYl9T
— Watcher.Guru (@WatcherGuru) April 8, 2023
BRICS Alters Economic Power Balance
According to data provided by Acorn Macro Consulting, the BRICS nations have firmly overtaken the G7 in global GDP, when factoring in purchasing power parity. Moreover, Acorn consultant, Richard Dias, shared a chart showcasing the growth of BRICS in comparison to the G7. Subsequently projecting the gap will continue to grow in the coming years.
The BRICS nations are a collective bloc of Brazil, Russia, India, China, and South Africa. Alternatively, the G7 is the collective of Canada, France, Germany, Italy, Japan, the United Kingdom, The United States, and the European Union.
The shift in economic power likely comes from the growth of the Chinese economy in particular. Additionally, the nation’s economy passed the US as the world’s largest economy in 2014. Moreover, according to the International Monetary Fund (IMF), China maintains a GDP PPP of $30 trillion, which is the first in the world. Whereas the US is placed second with a $25 trillion figure.
The interesting point of observation lies in how this economic power dynamic will continue to shift in the future. Specifically, the BRICS nations are continuing in their clear commitment to growth, with other nations showing interest in joining their efforts. The collective already has nations like Saudi Arabia, Egypt, and Bangladesh already investing in the BRICS’ funding organization, New Development Bank.
Story By Tutwa Consulting Group