The economic bloc known as BRICS has surpassed the G7 nations in terms of share of global GDP in PPP terms, according to Elvira Nabiullina, head of the Russian Central Bank. BRICS’ share of global productive output rose from 31 percent to 35 percent in 2023.
Nabiullina announced this figure in an interview with Russia’s state-owned news agency RIA Novosti. BRICS (which stands for Brazil, Russia, India, China, and South Africa, but also now includes members such as Egypt, Ethiopia, Iran, and the United Arab Emirates) aims to rival the American-led Atlanticist hegemony over the world economy, which is spearheaded by the Group of Seven: the US, the UK, Canada, Germany, France, Japan, Italy, and the EU.
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BRICS countries have overtaken the G7 in terms of share in global GDP in PPP terms according to the head of the Russian Central Bank.
Noted.
— Gold Telegraph ⚡ (@GoldTelegraph_) January 30, 2024
The metric used by Nabiullina, gross domestic product (GDP) in terms of purchasing power parity (PPP), is popular among international economists for comparing different countries’ economic productivity and standards of living. It compares different currencies by converting them, thereby adjusting for the difference in costs of goods and services. If it costs $200 to buy groceries in New York, but just $20 to buy groceries in a BRICS country, then they will consider a $200-to-$20 ratio to be equal between the two nations in what is called a “basket of goods” approach. Notably, this is not a market-based calculation but an industrial one, recording productivity in real terms rather than exchange value.
Nabiullina attributes the recent success of BRICS to the addition of the six new members they announced in August. But the productivity increase is also objective: “BRICS economies are developing quite quickly,” she asserted.
Argentina was set to join BRICS as of last year, but newly-inaugurated President Javier Milei reversed that decision.
Shane Devine is a writer covering politics, economics, and culture for Valuetainment. Follow Shane on X (Twitter).
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