Global investors are amazed at the strong performance of the BRICS alliance! Its share in the global economy has reached a new high! According to data from the World Bank, the BRICS' share of global GDP reached a record 35.7% in 2023. You are aware that this indicator is assessed based on purchasing power parity (PPP).
Recent estimates reveal that the economic alliance which consists of ten countries, including Russia, Brazil, India, China, and Saudi Arabia, has surpassed the G7 countries, whose combined share has declined to 29%. Since 2006, when BRICS was established, its share in the global economy has grown by 10.2 percentage points.
Previously, Russia’s authorities stated that the share of the BRICS countries in the global economy by purchasing power parity (PPP) would grow to 36.6% by 2028, while the G7's share would shrink to 27.8%.
To clarify, GDP by PPP is a country's GDP (nominal or real) in its own currency divided by the exchange rate based on purchasing power parity. This means that the currency of one country is converted into the currency of another so that with the specified sum, one can purchase the same quantity of goods and services in both countries. By this measure, the Russian economy ranks fourth globally, demonstrating 3.8% of the world's GDP. Interestingly, experts say it has surpassed Japan (3.7%) and Germany (3.4%).
