LONDON: A new G7 emerges, the Financial Times said on Wednesday.
The International Monetary Fund on Tuesday released its latest World Economic Outlook. A striking new finding emerges: the seven largest emerging markets are now bigger, in gross domestic product terms, than the long established G7 group of industrialized nations, when measured at purchasing power parity (PPP), the British daily said.
A hypothetical new G7, comprising the BRICs Brazil, Russia, India and China and three of the so-called MINT economies Mexico, Indonesia and Turkey – has a combined GDP of USD37.8 tn (at purchasing power parity) compared to USD 34.5 tn for the old G7 Canada, France, Germany, Italy, Japan, the UK and the US.
The new attempts to measure GDP also confirm that in PPP terms, China is now the world’s largest economy, overtaking the US (as revealed by the FT in April). At market exchange rates, the US economy is worth USD 17, 4 tn and the Chinese USD 10.4 tn. With an adjustment for relative prices, China’s economy moves up to first place, with a GDP of USD 17.6 tn.
Russia is the sixth among the new top 10, ahead of France and the UK.
“The new estimates point to a dramatically changed world: half of the twenty largest economies are now emerging markets and half are from the established rich world,” the Financial Times said.(PNA/TASS)