Saturday, December 2

BRICS vs. G7: The Battle for Economic Supremacy


  • BRICS alliance surpasses G7 in terms of purchasing power parity (PPP) with 31.5% contribution to global GDP.
  • BRICS aims to challenge G7 and the US dollar, convincing other developing countries to ditch the dollar for local currencies.
  • The shift in global trade could tilt financial power to the East and potentially damage the US economy.

BRICS Alliance Market Share

In a remarkable turn of events, the BRICS alliance has emerged as a formidable force, overtaking the G7 countries in terms of purchasing power parity (PPP). According to data from the UK-based research firm, Acorn Macro Consulting, BRICS now contributes 31.5% to the global GDP, slightly ahead of the G7’s 30.7%. This economic shift has significant implications for the balance of power on the global stage.

BRICS: A Rising Economic Powerhouse

The BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, has been gaining traction as an economic powerhouse. With a combined population of over 3 billion people and a vast array of natural resources, BRICS countries have experienced rapid economic growth in recent years. This growth has enabled them to challenge the dominance of the G7 group, composed of the United States, Canada, France, Italy, Germany, Japan, and the United Kingdom.

The Push to Ditch the US Dollar

BRICS is not content with just economic superiority; it is also seeking to challenge the global financial order dominated by the US dollar. The alliance has been actively persuading other developing countries in Asia, Africa, and South America to abandon the dollar and conduct global trade using their local currencies. This move aims to strengthen their native economies and reduce dependence on the US dollar.

Implications for the G7 and the US Economy

If BRICS succeeds in its endeavor to shift global trade away from the US dollar, it could significantly impact the G7 countries and the US economy. The decline in demand for the dollar would create turmoil in the American economy, as the US would struggle to fund its deficit. This potential disruption highlights the vulnerability of the US dollar’s position as the world’s reserve currency.

BRICS Expanding Influence

BRICS is not resting on its laurels. In a historic decision, the alliance expanded its membership to include 11 countries at the 15th summit in August. This expansion demonstrates BRICS’ growing influence and its ability to rally other nations behind its cause. As more countries join the alliance, the collective power of BRICS will continue to grow, posing a significant challenge to the G7 group.

The East vs. the West

The rise of BRICS and its push to challenge the G7 and the US dollar signifies a broader shift in global economic power from the West to the East. The increasing dominance of BRICS countries in the global economy could tilt the financial power balance in favor of the East, leading to a redistribution of economic influence worldwide.

About JB Accountants & Associates

We’ve been in operation for nine years, with our branch in Durban. We have an array of satisfied clientele countrywide.  We are a full-service Accounting Firm, serving numerous organisations, businesses and individuals in various sectors such as: 

  • Accounting
  • Advisory Services
  • Bookkeeping
  • Taxation
  • Internal Auditing
  • External Auditing

Join Our Al Ansaar WhatsApp News Channel

Epic Showdown: Rugby World Cup Final – Greatest Rivalry in Rugby History!
Epic Showdown: Rugby World Cup Final – Greatest Rivalry in Rugby History!
October 27, 2023
It's time for the ultimate clash on the rugby field! The Rugby World Cup Final is just around the corner, and this year's showdown promises to be nothing short of legendary....
Pakistan Stunned by Afghanistan in Cricket World Cup!
Pakistan Stunned by Afghanistan in Cricket World Cup!
October 25, 2023
Summary:Afghanistan delivers a spectacular performance, defeating Pakistan by eight wickets in a thrilling Cricket World Cup match.Ibrahim Zadran, Rahmat Shah, and Rahmanull...
Rugby World Cup Final: South Africa vs New Zealand
Rugby World Cup Final: South Africa vs New Zealand
October 23, 2023
- The Springboks have reached the finals after two one-point victories against France and England.This World Cup final marks an epic showdown between the two leading teams i...

Article written by:

Muhammad Salaahuddin
Marketing Manager at Radio Al Ansaar | Owner of Hayatım Cosmetic Brand
Subscribe to our newsletter to never miss any deals and promotions
Please enable JavaScript in your browser to complete this form.