BRICS emerge as world’s largest GDP bloc, buoyed by China’s rapid expansion Cryptocurrencies and ICOs

BRICS, a group of countries grouped as an alternative to the G7, is now the world’s largest bloc in terms of gross domestic product (GDP) on a purchasing power parity basis, according to reports by Acorn Macro Consulting. Fueled by China’s growth, the group now contributes 31.5% of global GDP, while the G7 contributes 30.7%.

BRICS countries change the economic scale

BRICS, a group of countries comprising Brazil, Russia, India, China and South Africa, has emerged as the world’s largest GDP bloc, leaving behind the G7 economies. According to data provided According to Acorn Macro Consulting, a UK-based macroeconomic research firm, the BRICS bloc now contributes 31.5% of global GDP, surpassing the G7, which currently accounts for just 30.7%.

A graph provided by Acorn consultant Richard Dias shows the steady growth of the BRICS compared to the G7 (Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union), and also predicts that the gap will only grow in the coming years.

The big boost for the BRICS bloc comes from the growth of the Chinese economy, which overcome US GDP measured at purchasing power parity (PPP), in 2014. According to the International Monetary Fund (IMF) estimatesChina has a PPP GDP of $30 trillion, ranking first in the world, while the US follows in second at $25 trillion.

higher expected growth

The gap between these groups and the economic influence of the BRICS could continue to grow in the near term, as more countries are interested in joining the ranks of the alternative group. In February, Anil Sooklal, South Africa’s ambassador to the BRICS, fixed that this year would be crucial for the expansion of the block, since the members were already defining the recommendations and criteria for the acceptance of new members.

Major economies have already applied to become members of the group, with Saudi Arabia, Egypt and Bangladesh having bought shares in the New Development Bank, the BRICS funding organization. Other countries like Iran, Algeria, Argentina and Turkey are also interested in joining the bloc.

While still just a project, in July 2022 the BRICS countries proposed the idea of ​​issuing their own currency to undermine the US dollar’s dominance when it comes to international agreements. More recently, President Xi of China and President Putin of Russia have decided to boost the Chinese yuan as a settlement currency between Russia and the emerging economies of Latin America, Asia and Africa.

What do you think about the rise of the BRICS as the largest GDP bloc in the world? Tell us in the comment section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as someone who was late to the game, entering the cryptosphere when the price spike occurred in December 2017. With a background in computer engineering, living in Venezuela and being impacted by the rise of cryptocurrencies on a societal level, offers a different point of view. about the success of cryptocurrencies and how he helps the unbanked and underserved.

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