<p>Depends on your definition of powerful. GDP measures gross production. If BRICS GDP &gt; G7 GDP, then that means BRICS can produce in a given period for which GDP was calculated more value than G7. If this is how you wan't do define economic power then comparing GDP between two regions using PPP is valid.</p>
<p>However, 'economic power' is not rigorously defined. For example, one could argue that country with small GDP but holding some key resource has 'economic power' over countries that need access to that resource.</p>

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2023-08-26T22:38:09.080Z
2023-08-26T22:38:09.080Z
1muflon1
<p>I am not an economist, and I hope my question isn't inappropriate. I have seen various posts on social media spreading the news that the BRICS bloc surpassed the G7 in terms of PPP-adjusted GDP. People who post this claim this is a big deal in geopolitical terms as it signals that the BRICS are more &quot;powerful&quot; than the G7 in economic terms. I downloaded the data from the IMF: the numbers seem to back the premise up. The question is: does this comparison make sense? I sense something is wrong with the reasoning but I can't pinpoint it (I have zero training in economics). Or maybe I am just wrong? Thanks for any help in clarifying.</p>

<gdp><political-economy>
Clarification on GDP comparisons
Perplexed
# Clarification on GDP comparisons

(Asked by: username_0 on 2023-08-26)

I am not an economist, and I hope my question isn't inappropriate. I have seen various posts on social media spreading the news that the BRICS bloc surpassed the G7 in terms of PPP-adjusted GDP. People who post this claim this is a big deal in geopolitical terms as it signals that the BRICS are more "powerful" than the G7 in economic terms. I downloaded the data from the IMF: the numbers seem to back the premise up. The question is: does this comparison make sense? I sense something is wrong with the reasoning but I can't pinpoint it (I have zero training in economics). Or maybe I am just wrong? Thanks for any help in clarifying.

**Tags:** gdp, political-economy


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## 1 answers

### Answer by username_1 on 2023-08-26. Score: 1

Depends on your definition of powerful. GDP measures gross production. If BRICS GDP > G7 GDP, then that means BRICS can produce in a given period for which GDP was calculated more value than G7. If this is how you wan't do define economic power then comparing GDP between two regions using PPP is valid.

However, 'economic power' is not rigorously defined. For example, one could argue that country with small GDP but holding some key resource has 'economic power' over countries that need access to that resource.


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