"Analyzing the Growing Economic Powerhouse: The Inevitable Ascent of BRICS Over G7"

In 2020, the BRICS countries (Brazil, Russia, India, China, South Africa) passed the G7 nations (Canada, France, Germany, Italy, Japan, United Kingdom, United States) in terms of their share of global Gross Domestic Product (GDP) based on purchasing power parity (PPP) for the first time. The data supporting this shift was featured in the IMF World Economic Outlook Report from October 2023. From 1997 through various global challenges, including the Asian currency crisis, SARS in 2003, the 2008 housing crash, swine flu in 2009, and various world conflicts, BRICS countries steadily closed the gap with the G7. This trend accelerated as the world dealt with a global pandemic. Looking at other global economies, those not classified as G7 or BRICS saw a decrease in collective GDP from 39.4% in 2008 to 37.9% in 2023, attesting to the fact that the BRICS nations are a significant global growth bloc. In other news, the inception of 2024 saw five new members joining the BRICS alliance: Iran, Saudi Arabia, Egypt, Ethiopia and the United Arab Emirates, three of which are oil-producing nations. According to South African President Cyril Ramaphosa, this is the first stage of an expansion process, with further phases to follow. The IMF Report anticipates an incremental 4.1% share of global GDP coming from these five members in 2024, bringing the total GDP share of the expanded BRICS to 36.6%, compared to the G7's 29.4%. When looking deeper into the numbers, each member of the G7 nations has seen a drop in its share of global GDP over time. On the other hand, the BRICS nations underwent a significant growth between 1992 and 2023. Furthermore, population aging varies significantly between the G7 and BRICS countries. In terms of the percentage of total population aged 65 and above, Japan leads the G7 countries with 29.9%, followed by Italy (24.1%), Germany (22.4%), France (21.7%), the UK (19.2%), Canada (19.0%), and the US (17.1%). For the BRICS countries, the percentages are significantly lower, with Russia (15.8%), China (13.7%), Brazil (9.9%), India (6.9%) and South Africa (5.9%). With regard to central government debt, four G7 members have sovereign borrowing levels higher than their GDP, with Japan being an outstanding case. However, for the BRICS countries, available data only shows Brazil with a ratio of 81%, South Africa 71% and India 55%, indicating significantly lower debt levels relative to GDP. Finally, a review of external trade balance as a percentage of GDP in 2022 demonstrates a clear distinction between the G7 and BRICS blocs. All G7 members except for Germany and Canada are net importers. In contrast, all BRICS countries except for India are net exporters. Many factors contribute to a nation's long-term GDP trajectory, including the sectoral mix, labour productivity and employment rate, capital investment and infrastructure spending, technology adoption and research development spending, natural resource availability, public education and healthcare spending, political stability, environmental sustainability, taxation, and exchange rates. These factors, among others, played a vital role in the unbroken trend of BRICS outpacing the G7 in terms of share of global GDP PPP over several decades. This trend is projected to continue with no foreseeable reversal in the near future.