IEA Economics Fellow Julian Jessop was quoted in Business Leader arguing that the G7 group of highly developed economies still leads the ‘BRICS’ group (Brazil, Russia, India, China, and South Africa) in global economic power despite the rapid GDP growth seen in India and China in recent decades.

Julian said:

“The BRICS have caught up with the G7 in terms of GDP, but only if this is compared using PPP exchange rates to reflect differences in domestic purchasing power (a Dollar goes a lot further in the poorer emerging economy than in a richer advanced one). In terms of actual market exchange rates – a better measure of importance in the global economy – the G7 are still well ahead.”

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