Why are BRICS growing faster than G7?

According to the International Monetary Fund’s (IMF) update, the BRICS nations—now expanded to include Saudi Arabia, Egypt, UAE, Ethiopia, Indonesia, and Iran—are set to dominate global growth in 2025. Among them, Ethiopia tops the chart with a projected 7.2%, followed by India (6.6%), China (4.8%), and UAE (4.8%). Even oil-driven economies like Saudi Arabia (4.0%) and Egypt (4.3%) show strong momentum. Brazil is expected to grow 2.4%, while Russia and Iran are forecast at a modest 0.6% each.

Altogether, the average GDP growth forecast for BRICS stands at 3.8%, nearly four times the pace of G7 economies. This shows how emerging markets are becoming key engines for global recovery, especially as advanced economies grapple with inflation, aging populations, and sluggish productivity.

What’s slowing the G7 economies down?

The story looks very different on the other side. The G7 economies—Canada, France, Germany, Italy, Japan, the U.K., and the U.S.—are projected to grow at an average of only 1.0% in 2025. The United States leads the group with 2.0%, followed by the U.K. at 1.3%, Canada at 1.2%, and Japan at 1.1%.

But the Eurozone economies continue to struggle. France is forecast to grow 0.7%, Italy 0.5%, and Germany—Europe’s industrial giant—barely 0.2%. The IMF’s report highlights tight monetary conditions, low demand, and ongoing geopolitical tensions as major drags on G7 performance. With high interest rates and slow consumption, most advanced economies are expected to see limited expansion next year.

GDP growth forecasts for BRICS and G7 nations in 2025

BRICS

• Brazil: 2.4%
• Russia: 0.6%
• India: 6.6%
• China: 4.8%
• South Africa: 1.1%
• Saudi Arabia: 4.0%
• Egypt: 4.3%
• UAE: 4.8%
• Ethiopia: 7.2%
• Indonesia: 4.9%
• Iran: 0.6%
• Average: 3.8%

G7

• Canada: 1.2%
• France: 0.7%
• Germany: 0.2%
• Italy: 0.5%
• Japan: 1.1%
• UK: 1.3%
• U.S.: 2.0%
• G7 Average: 1.0%

Source: IMF’s World Economic Outlook October Update

What does this mean for the global economy?

The contrast between BRICS (3.8%) and G7 (1.0%) reflects a shifting balance in global economic power. Emerging economies are now driving growth through expanding domestic markets, digital innovation, and industrial diversification. In contrast, the world’s richest nations are entering a phase of slow growth, with economic uncertainty and demographic pressures curbing output.

For example, India’s 6.6% growth forecast keeps it the fastest-growing major economy in the world, while Ethiopia’s 7.2% makes it one of the fastest among all developing nations. China’s 4.8% growth, though slower than past years, still places it well above most G7 peers.

How will these GDP forecasts shape 2025?

If these forecasts hold true, 2025 could mark a major economic realignment. BRICS countries—representing nearly half of the world’s population—are expected to contribute the largest share of global growth. Meanwhile, slow-moving G7 economies will continue focusing on stabilizing inflation and sustaining moderate employment growth.

The IMF’s World Economic Outlook reinforces one key message: the world’s growth momentum is tilting eastward and southward. The next big economic decade might not belong to the traditional powerhouses—but to the emerging BRICS nations, where consumption, infrastructure, and technology are driving transformation at an unprecedented scale.