When comparing BRICS economies (Brazil, Russia, India, China, and South Africa) to G7 economies (United States, United Kingdom, Germany, France, Japan, Italy, and Canada), an important distinction arises in terms of global GDP contributions, particularly when measured by purchasing power parity (PPP).
While the G7 consists of advanced economies, thanks to their technological leadership, high per capita income, and innovation-driven markets , BRICS is composed of emerging markets with rapid growth potential and collective ability to produce more goods and services at relatively lower costs.
BRICS countries represent approximately five times the population of G7 nations, underscoring their demographic advantage. G7 nations lead global R&D, investing ~$1.2 trillion annually (~70% of global R&D), with the US, Japan, and Germany excelling in AI, robotics, and green energy. BRICS spends ~$250 billion, driven by China’s ~$180 billion. While G7 dominates, BRICS, especially China, is rapidly advancing in AI, 5G, and renewables.
The G7 nations, with a combined nominal GDP of ~$45 trillion in 2024 (45% of global GDP), are led by the US contributing ~$26 trillion, showcasing advanced markets and a high per capita GDP of $47,000. In comparison, BRICS nations generate $27 trillion (25-30% of global GDP), dominated by China ($19 trillion) and India ($4 trillion), though their average per capita GDP is ~$6,000. While G7 economies are mature and slower-growing, BRICS nations, particularly China and India, are expanding rapidly, underscoring their increasing influence in the global economy.
According to the IMF, BRICS nations are projected to drive future global economic growth, with China alone expected to account for 22% of global growth over the next five years, exceeding the combined contribution of the G7. In 2024, BRICS countries are forecasted to grow at an average rate of 3.6%, far outpacing the G7’s 1%.
Moving forward, while BRICS is growing economically, it struggles with internal conflicts, lack of formal integration, and diverging foreign policies, unlike the unified G7. To truly rival the G7, BRICS must resolve internal fractures and align on critical global issues.
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