🔸 Ranked: The World’s 20 Largest Economies, by GDP (PPP)
The G7, formed during the 1970s oil crisis, consists of major high-income economies, while BRICS emerged in the 2000s as a group of growing economies from the Global South, now competing with the G7. Both are part of the G20, which represents 70-85% of the global economy.
China has been the largest economy by PPP-adjusted GDP since 2014, while the U.S. is close behind. India ranks third, with its PPP-adjusted GDP significantly exceeding its nominal GDP. Collectively, BRICS is performing better than the G7, largely due to India's growth.
PPP-adjusted GDP accounts for price level differences, providing a clearer picture of economic output for low and middle-income countries. However, it faces criticisms regarding assumptions about a common basket of goods and potential reliance on outdated data, while actual currency exchange rates remain crucial for trade and investment.
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The G7, formed during the 1970s oil crisis, consists of major high-income economies, while BRICS emerged in the 2000s as a group of growing economies from the Global South, now competing with the G7. Both are part of the G20, which represents 70-85% of the global economy.
China has been the largest economy by PPP-adjusted GDP since 2014, while the U.S. is close behind. India ranks third, with its PPP-adjusted GDP significantly exceeding its nominal GDP. Collectively, BRICS is performing better than the G7, largely due to India's growth.
PPP-adjusted GDP accounts for price level differences, providing a clearer picture of economic output for low and middle-income countries. However, it faces criticisms regarding assumptions about a common basket of goods and potential reliance on outdated data, while actual currency exchange rates remain crucial for trade and investment.
💬 Source
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