BRICS Contribution to World Economic Growth in relation to G7
The BRICS is the acronym for Brazil, Russia, India, China, and South Africa, and the G7
consist of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United
States, which represent two significant blocs shaping global economic dynamics. While
the G7 symbolises the world’s most advanced economies, the BRICS reflects a coalition
of emerging powers from the Global South with increasing influence in global economic
governance (Stuenkel, 2020).
Available statistics from the IMF show that in 2024, BRICS accounts for approximately
32% of global GDP on a purchasing power parity (PPP) basis, surpassing the G7’s share
of about 30% (IMF, 2024). The key drivers of BRICS’ growth are China and India, which
have continued to post higher economic growth rates relative to G7 nations, benefiting
from large populations, expanding markets, and a relatively youthful population (World
Bank, 2023). In contrast, G7 economies face structural constraints such as ageing
populations and slower productivity growth, though they remain dominant in innovation,
capital markets, and institutional governance (OECD, 2022).
It is pertinent to note that BRICS has made notable strides in creating alternative financial
mechanisms, such as the New Development Bank (NDB) and the Contingent Reserve
Arrangement (CRA), aimed at reducing dependency on Western-led institutions like the
IMF and World Bank (Cooper, 2021). This reflects BRICS’ strategic ambition to shape a
multipolar global financial system. Meanwhile, G7 countries maintain control over major
global financial and trade institutions and dominate international aid, investment, and
technology flows (Kirton, 2018).
Moreover, while the G7 emphasises preserving the liberal international order, promoting
democracy, and addressing transnational threats such as climate change and pandemics,
BRICS emphasises reforming the global governance architecture to reflect the voices of
developing nations. The bloc has consistently called for restructuring the UN Security
Council and the WTO to make them more representative and equitable (Thakur, 2020).
Despite divergent approaches, both blocs are indispensable to global economic growth.
BRICS contributes by fueling development-led growth, especially across Asia and Africa,
while the G7 contributes through advanced industrial capacity, financial innovation, and
global regulatory standards. Therefore, rather than competition alone, enhanced
cooperation between BRICS and G7 is crucial for addressing shared global challenges,
including climate change, digital transformation, and geopolitical instability (Gasper et
al., 2023). Table 1 below shows the share of BRICS contribution to World Economic
Growth (2024-2029).
Table 1 shows that the BRICS contribution to World Economic Growth between 2024 and
2029 is estimated at 44.3 per cent. Brazil is expected to contribute 1.8 per cent, Russia
1.8 per cent, India 14.2percent, China 21.2 per cent, South Africa 0.3 per cent, Egypt
1.5 per cent, Iran 0.9 per cent, Saudi Arabia 1.5 per cent, United Arab Emirates 0.7 per
cent and Ethiopia 0.4 per cent. From the above data, India and China will jointly
contribute 35.4 per cent to global economic growth between 2024 and 2029, making
both countries the largest BRICS countries that will contribute the largest share to Global
Economic Growth. The implication is that India and China’s contributions to Global
Economic Growth will surpass that of other BRICS countries combined. This shows that