BRICS member nations have surpassed the Group of Seven (G7) club in terms of Gross Domestic Product (GDP) based on Purchasing Power Parity (PPP), data published by the UK-based economic research firm Acorn Macro Consulting shows.
The G7 club of industrialized countries consists of the United States, Canada, the United Kingdom, France, Italy, Germany, and Japan.
According to the British consultancy, the five BRICS nations now contribute nearly 31.5% of the global GDP, compared to 30.7% by G7 countries.
The development comes as Western countries, which include G7 nations, grapple with recessionary headwinds owing to the high interest rates set by central banks to curb domestic inflation, which in turn has been caused by a surge in fuel and food prices.
The IMF foresees negative growth for the UK, while the US is expected to be the best-performing G7 economy, with a growth forecast of nearly 2%.
On the other hand, the BRICS’ economies of India and China are expected to drive global growth this year, both estimated to grow from five to seven percent this year.
In spite of the ongoing Western sanctions, Russia’s economy has been projected to rebound and grow at 3% this year, based on the International Monetary Fund's (IMF) forecast. The IMF anticipates that Russia’s economic growth is going to accelerate to 2.1% in 2024.
Not only have BRICS countries rejected the US-led Western sanctions against the Russian Federation, but these nations have also stepped up efforts to expand trade in local currencies as a way to overcome trade disruptions caused by the said restrictions.
Besides, BRICS has been gaining popularity among low and middle-income nations, many of which have expressed a desire to be part of the informal group.
Naledi Pandor, foreign minister of South Africa, the country that is currently chairing BRICS, said last month that Saudi Arabia, Argentina, Mexico, the UAE, and Algeria were among 12 nations that want to join the association.