BRICS countries positioned for stronger economic resilience, report says
In a recent report by Ernst & Young, the BRICS+ group of nations—comprising Brazil, Russia, India, China, South Africa, and additional emerging economies—has been identified as better equipped to tackle future economic crises compared to the G7 countries. The report highlights that BRICS+ nations boast a lower debt-to-GDP ratio, providing them with a stronger fiscal foundation.
Key findings from the report indicate that BRICS+ nations not only maintain a lower debt-to-GDP ratio but also benefit from access to higher primary deficits and an almost equal excess of growth over interest rates. “The BRICS+ group is better placed to fiscally combat any future major economic crisis,” the report states, emphasizing their advantageous economic positioning relative to the G7.
While G7 nations still command a larger share of global GDP based on market exchange rates, the BRICS+ group is rapidly expanding its footprint when assessed by Purchasing Power Parity (PPP). Projections suggest that by 2029, the BRICS+ share of global GDP will reach 29.2% in market exchange terms and a substantial 38.3% in PPP terms, contrasting with the G7’s anticipated 42.4% and 27.5%, respectively.
The report also notes a concerning trend for the G7, whose share of global GDP has been steadily declining—from 64.4% in 2002 to an estimated 44.4% in 2024. The International Monetary Fund (IMF) forecasts this figure will fall further to 42.4% by 2029. Conversely, the BRICS+ group has seen a remarkable increase in its global economic share, from just 10.1% in 2002 to a projected 27.3% in 2024, with expectations of reaching 29.2% by 2029.
As the global economic landscape continues to evolve, the Ernst & Young report underscores the shifting dynamics, suggesting that while the G7 retains significant influence, the BRICS+ nations are increasingly poised to address future economic challenges effectively due to their favorable fiscal conditions. This emerging trend signals a potential rebalancing of global economic power in the coming years.
