The contrasting conditions of the two informal federations have focused public attention on the nature of the rivalry between them. BRICS vs. G7? Which is stronger in terms of economic growth?
After the BRICS Summit 2024 last October, more than 40 countries have shown interest in joining the multilateral organization, which was originally convened to challenge the Western-dominated world.
On the other spectrum, the G7 bloc of the world’s leading nations, such as the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom, has seen a decline, especially in the wake of the COVID-19 pandemic.
The contrasting conditions of the two informal federations have focused public attention on the nature of the rivalry between them. BRICS vs. G7? Which is stronger in terms of economic growth? Let’s follow the discussion of these circumstances as quoted from The Council on Foreign Relations, The Globalist, and Statista.
BRICS vs G7, Which Alliance Has a Better Economic Projection?
Originally initiated by Russia in 2009, BRICS addresses issues in multiple areas of life, including economic cooperation, geopolitics, and the development of multilateral trade. According to the Council on Foreign Relations, reducing dependence on the U.S. dollar is one of the main goals of this union.
Similar to the BRICS, the G7 was convened in 1975 to provide a platform for non-communist nations to address pressing economic issues related to inflation and recession resulting from the Organization of Petroleum Exporting Countries (OPEC) oil embargo.
Prior to its indefinite suspension from the group, Russia was once a founding member of the G7. However, the bloc faced greater challenges due to Russia’s full-scale invasion of Ukraine, which led to the country’s suspension in 2014, according to the Council on Foreign Relations.
According to data published by Statista, the BRICS countries had already surpassed the G7 countries in terms of purchasing power parity in 2018. The gap has been steadily widening, with the BRICS now accounting for 35% of the world’s GDP, compared to 30% for the G7 members.
With even more countries joining the informal division, the BRICS now represent 45% of the world’s total population, while the G7 alliance is attributed to only 10%. On the other hand, new BRICS members may have worsened global CO2 emissions, as the organization is currently responsible for 50% of them.
The Future of BRICS
While Russia, China, and Iran are inclined to compete with the dollar as a reserve currency, non-aligned members such as Brazil and India are expected to resist the group’s common anti-Western strategy.
BRICS is currently prioritizing the integration of new members and opening a new category of BRIC partner countries. The group has been seen as opening up more opportunities to attract new memberships from likely nations, with current members being suggested to bring in more partner countries to access other regional trade blocs.
Ultimately, the future of these blocs depends on their ability to adapt to changing global demands, manage internal differences, and address pressing issues such as sustainability and economic inequality.
By Vidya Amalia Rimayanti
