The BRICS+ now commands a larger share of world GDP than the G7. The bloc originally comprising Brazil, Russia, India, China, and South Africa has been expanding. Alongside newly added members in Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia, and the United Arab Emirates, they surpassed the industrialized G7 bloc when measured by purchasing power parity (PPP).
The Story In Numbers
Two decades ago, the G7 held around 42% of global economic output per PPP, while the BRICS+ had 24.1%. Today, that number has nearly reversed, as BRICS+ accounts for around 40%, while G7 holds 28.8%. The crossover point came in 2018, but the trend accelerated during the COVID-19 Pandemic.
In absolute terms, the BRICS+ GDP, measured in international PPP dollars, reached $75.6 trillion in 2024, compared to the G7’s $56.6 trillion. Although G7 maintains superiority in nominal GDP terms ($46 trillion versus BRICS’ $27.7 trillion), the PPP metric reveals the actual productive capacity and domestic purchasing power of these rapidly developing economies.
In developing economies, lower domestic prices for services, housing, and non-tradable goods mean a dollar of income purchases more real goods and services. This isn’t statistical manipulation--it reflects genuine economic capacity.
The Overlooked Differences
Demographics is like the gravity in economic terms. Overlooked, yet influencing everything. BRICS+ nations represent 45% of the global population. People influence both sides of the curve – providing both production and consumption. China and India alone account for approximately 35% of the world’s population.
Meanwhile, sustained growth differentials have compounded over decades. From 1990 to 2022, the BRICS nations averaged 4.5% annual GDP growth--triple the rate of the G7’s 1.5%. In 2025, India is projected to stand out with a 6.6% growth rate, while China is expected to maintain an expansion of 4.8%.
Yet, G7 economies struggle to exceed 2% growth. Aging populations, mature markets, and productivity plateaus are the main headwinds.
The Multipolar Reality
The BRICS-G7 reversal symbolizes a broader shift toward a multipolar world. For seven decades, Western institutions--the IMF, the World Bank, and the WTO--have set global economic rules.
Yet, as we enter the second quarter of the 21st century, the BRICS+ economic contribution has lent weight to the bloc. Economic influence is increasingly distributed across multiple centers rather than concentrated in a single hegemon. Trade patterns are regionalizing. Financial architecture is fragmenting. Currency diversification is accelerating, albeit slowly, and gold’s rampant rise is a clear sign of the system that is hedging risks from this change.
This reality means that every participating party must reevaluate its positioning. Businesses have to pay attention to multiple regulatory regimes and currency risks. Policymakers have to engage with rising powers. Investors must rebalance their portfolios while scouting emerging markets for high-quality opportunities.
The unipolar era is coming to an end, and the multipolar era is upon us. How smoothly this transition proceeds will define the next quarter-century of global economic development.
Read Next:
- A New Multipolar World Is Here -- And Investors Can’t Rely On Old Assumptions
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