BRICS overtaking G7 in economic might – Putin
The BRICS states are overtaking the G7 in terms of share in global GDP in PPP terms, Russian President Vladimir Putin said on Thursday while addressing the Federal Assembly.
The share of BRICS will increase to 36.6% by 2028, while that of the G7 will decrease to 27.8%, according to estimates provided by the president.
“But ten years ago, the situation was different,” Putin said, noting that in 2022 the BRICS countries surpassed the G7 in terms of GDP in PPP terms (31.5% versus 30.3%), whereas back in 1992 the BRICS share was only around 16.5%.
PPP is a metric popular with many economists that compares economic productivity and standards of living between countries by adjusting for the differences in the cost of goods and services.
The BRICS group of emerging economies, which previously comprised Brazil, Russia, India, China, and South Africa, underwent a major expansion after Iran, Ethiopia, Egypt, and the United Arab Emirates joined in January of this year. Saudi Arabia has also been invited and is set to become a member. Numerous other states have expressed interest in joining, while some have already formally submitted applications.
According to data from the IMF, the share of the G7 (comprising Canada, France, Japan, Italy, the US, UK, and EU) in global GDP in terms of PPP has been on a steady decline over the past several years, dropping from 50.42% in 1982 to 30.39% in 2022. The Washington-based institution expects the figure to edge lower to 29.44% this year.
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