Analysis of a new IMF report projects the top seven emerging markets, measured at purchasing power parity (PPP), will overtake the conventional G7 group of industrialized economies in 2014.
TheFinancial Timesestimated that the seven largest emerging economies can hypothetically be called a new G7: four BRICS members – Brazil, Russia, India and China and three countries of the so-called MINT – Mexico, Indonesia and Turkey, will have a combined GDP of $37.8 trillion in 2014 when calculated at purchasing power parity (PPS). However, the long established G7 group of industrialized nations: Canada, France, Germany, Italy, Japan, the UK and the US are expected to have an output of $34.5 trillion.
The IMF World Outlook update showed that China is now the world’s largest economy in terms of PPP having surpassed the US. In terms of relative prices China’s output is forecast to soar to $17.6 trillion, which is above the $17.4 billion of the US.