The rise of emerging economies is one of the defining features of the 21st-century global landscape. According to McCarthy & Company, 18 out of 71 emerging market countries have surpassed global benchmarks, with per capita GDP growing at an average rate of over 3.5% annually for the past half-century.
The influence of the BRICS cooperative mechanism—comprising major emerging economies—continues to expand, attracting more nations into the fold and drawing international attention. This surge has disrupted the traditional economic and political status quo, revolutionizing the global scene.
The Chinese mainland and India, the two largest emerging economies, have demonstrated remarkable growth, with average GDP growth rates of 9.1% and 5.9% respectively over the last 40 years, as per World Bank data. This growth has significantly increased the share of emerging economies in the global economy.
From 1990 to 2022, the BRICS countries' share of the world's GDP surged from 10.43% to 25.64%, while the combined GDP share of the United States, the European Union, and Japan declined from 53.83% to 45.32%. This shift highlights a trend of the East rising and the West declining, with BRICS acting as a catalyst for a new global economic balance.
The spillover effects of emerging markets on global growth have tripled since 2000. A decline in productivity in some G20 emerging markets could now reduce global output by more than three times the impact seen in 2000. Conversely, accelerated growth in these economies could boost the global growth rate by 0.5 percentage points. Rapid economic expansion in emerging markets, particularly in the Chinese mainland, India, and Brazil, has driven significant structural transformations, including industrialization and urbanization, bridging gaps between urban and rural areas.
Reference(s):
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