Combined PPP GDP of Brics nations surpasses that of the G7 for the first time ever

DEVELOPING nations in the Brics group of countries have now overtaken the G7 in terms of having a higher combined gross domestic product (GDP) according to recently published data from Acorn Macro Consulting.

Made up of Brazil, Russia, India, China, and South Africa, Brics is a gathering of developing nations who are seen as having great potential. They are seen as the economies of the future and the successors to the G7 group of nations made up of industrialised nations made up of the US, Japan, Germany, the UK, Canada, France and Italy.

In a shock development, however, the latest Acorn Macro Consulting report revealed that the combined GDP of Brics nations has already surpassed that of the G7. According to the UK-based research firm, Brics nations now contribute 31.5% to the global GDP, which is just slightly ahead of the 30.7% of the G7.

Acorn consultant, Richard Dias, said the Brics nations have taken the lead when one factors in purchasing power parity (PPP). He added that the  shift in economic power likely comes from the growth of the Chinese economy in particular.

Also, according to the International Monetary Fund, China maintains a GDP PPP of $30trn, which is the highest in the world, ahead of the US who is placed second with a $25trn. Brics nations are continuing to enjoy economic growth, with other nations showing interest in joining their efforts.

Other developing countries expected to join the fray include the Mint nations of Mexico, Indonesia, Nigeria and Turkey. Meanwhile, other nations like Saudi Arabia, Egypt and Bangladesh are already investing in the Brics funding organisation the New Development Bank.