BRICS Surges to 35.7% of Global GDP in 2023; G7 Declines to 29%

By Al Mayadeen English

3 Jul 2024 20:19

Since its establishment in 2006, the bloc has seen its global economic share rise by 10.2 percentage points, according to Sputnik's analysis based on World Bank data.

In 2023, the BRICS countries collectively accounted for a historic 35.7% share of the global GDP in terms of purchasing power parity (PPP), marking an increase of 0.6 percentage points compared to the previous year.

Since its establishment in 2006, the bloc has seen its global economic share rise by 10.2 percentage points, according to Sputnik's analysis based on World Bank data.

Conversely, the G7 nations saw their economic indicators decline to 29%, the lowest in 30 years, losing 0.4 percentage points year-on-year.

Since 2006, the G7's global GDP share has decreased by 9.7 percentage points.

Overall, global GDP in PPP terms reached $184.7 trillion in 2023, reflecting a 7% increase from the previous year.

Meanwhile, the remaining countries outside these major blocs accounted for 35.3% of the world's GDP, maintaining a stable share since 1990, fluctuating within a one-percentage-point range.

Recent developments surrounding the US dollar have sparked concerns among international financial institutions, spurred by Russian President Vladimir Putin's announcement regarding potential currency reforms within the BRICS+ framework.

Institutions like the IMF and JPMorgan have observed a shift away from the dollar by numerous countries, including BRICS members, due to geopolitical tensions and economic dependencies.

On November 12, the US dollar faced a downturn following trading halts on the Moscow Stock Exchange in response to US sanctions targeting Russia.

Concurrently, the longstanding US-Saudi petrodollar agreement expired, allowing Saudi Arabia to diversify its oil sales beyond the US dollar, potentially impacting the US economy.

Putin's announcement at the St. Petersburg International Economic Forum detailed BRICS' plans for an independent payment system aimed at reducing reliance on Western financial infrastructures.

Observers argue that this initiative, supported by substantial gold reserves among BRICS nations, points to a strategic move towards economic sovereignty and stability.