IMF Forecast: BRICS Surge Ahead as Global Growth Shifts from G-7


Last updated: January 22, 2025

According to the latest International Monetary Fund projections, the global economy is leaning more on emerging markets like BRICS nations for growth, leaving the wealthier G-7 countries trailing.

The IMF’s recent forecasts reveal a significant shift in the source of global expansion over the next five years, with countries such as China, India, Russia, and Brazil taking the lead.

In contrast, contributions from developed nations like the US, Germany, and Japan are being scaled back, with the Group of Seven’s overall share diminishing.

China tops the list, driving 22% of global growth, more than all G-7 members combined.

India isn’t far behind, set to account for nearly 15% of the total growth through 2029, signaling a reshuffling of global economic power.

The purchasing power parity measure, which adjusts for cost differences, highlights how emerging markets are stepping up.

Egypt, for instance, is expected to contribute 1.7 percentage points to global growth, on par with economic giants Germany and Japan.

Vietnam, too, is positioned to match the output of France and the UK, each adding 1.4 percentage points.

Despite its post-pandemic expansion, the US continues to lose ground in global rankings, with India and China rapidly closing the gap in purchasing power terms.

Even smaller G-7 economies, such as Canada and Italy, are contributing less than 1% to global GDP growth, lagging behind populous, developing nations like Bangladesh and the Philippines.

As these forecasts unfold, they paint a picture of a world economy increasingly driven by emerging markets, with the BRICS bloc becoming a symbol of the shifting balance of power.

Business influence in these emerging markets is expected to play a key role in reshaping global trade and development in the coming years.

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Venture Smarter | IMF Forecast: BRICS Surge Ahead as Global Growth Shifts from G-7
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Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
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Venture Smarter | IMF Forecast: BRICS Surge Ahead as Global Growth Shifts from G-7
Growth & Transition Advisor
LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
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