BRICS Finally Closed the Gap on the G7: A Power Shift in the Global Economy

The global economic landscape is undergoing a significant transformation. For years, the G7 nations – the United States, Canada, Japan, France, Germany, Italy, and the United Kingdom – have dominated the global economic stage. However, the BRICS nations – Brazil, Russia, India, China, and South Africa – have been steadily gaining ground, and the latest data indicates that BRICS finally closed the gap on the G7, signifying a potential power shift in the world order.

In 2025, BRICS countries account for 34.9 percent of global GDP in terms of purchasing power parity (PPP), surpassing the G7’s 30.05 percent. This shift represents a monumental change and reflects the growing economic clout of the BRICS nations. This is not just about surpassing numbers; it signals a broader change in global influence, investment flows, and geopolitical dynamics.

The rise of BRICS has not been without its challenges. Internal complexities and geopolitical tensions have, at times, slowed progress. Furthermore, external events, like the conflict in Ukraine, have added layers of complexity. The New Development Bank quickly froze Russian projects, and Moscow hasn’t been able to access dollars via the BRICS shared foreign-currency system. Essentially, while cooperation exists, limitations and real-world constraints influence the effectiveness of the bloc. Despite these challenges, the collective economic strength of the BRICS nations continues to grow.

This growth has led many to consider the BRICS as a potential alternative to the established Western-led international institutions. A year ago, the British magazine The Economist wrote that BRICS could become a real counterweight to the G7, since the Shanghai Cooperation Organization is “too... [incomplete snippet, contextually implied: is ‘narrowly focused’ or ‘politically aligned’]. This highlights the potential for BRICS to reshape the global order and offer alternative perspectives on global governance and development.

While the G7 continues to be a significant force, especially in technological innovation and financial markets, the BRICS nations offer a different model, focused on infrastructure development, emerging markets, and a more multipolar world. The closing of the economic gap is not necessarily a zero-sum game. Increased competition and collaboration between the two blocs can lead to innovation, better solutions to global challenges, and a more balanced and inclusive global economy.

Ultimately, the fact that BRICS finally closed the gap on the G7 signifies a dynamic and evolving global landscape. This trend demands closer attention, strategic adaptation, and a willingness to embrace a more multipolar future.