BRICS Economies Account for About 40% of Global GDP in PPP Terms, CareEdge Report Says
CareEdge Global identifies fiscal sustainability, financial resilience, deeper economic integration and stronger institutions as priorities for improving sovereign credit resilience
BRICS economies accounted for about 40% of global GDP in purchasing power parity (PPP) terms and around 25% of global merchandise exports in 2025, according to a report by CareEdge Global Ratings. The report, titled BRICS nations: Building credit resilience, examines the sovereign credit strengths and vulnerabilities of eight of the 11 BRICS nations rated by CareEdge Global and outlines areas that could strengthen their credit resilience.
BRICS gains greater share of global economy
The combined share of BRICS economies in global GDP has increased significantly, reaching about 40% in PPP terms in 2025. Their share of global merchandise exports also rose to around 25%.
China accounts for a substantial portion of the grouping's economic weight. However, even excluding China, BRICS economies represented around 21% of global GDP and 11% of global exports in 2025, highlighting the wider economic significance of the grouping.
Compared with the G7, BRICS has greater economic scale in PPP terms, higher investment rates, stronger median medium-term growth prospects and lower government debt. The grouping also has a larger population base, a younger median demographic profile and a more favourable median age-dependency ratio.
The G7 continues to hold structural advantages in nominal GDP, research and development expenditure and financial-market depth. Its currencies also account for a dominant share of global foreign exchange reserves.
BRICS sovereign credit profiles remain diverse
CareEdge Global Ratings has rated eight of the 11 BRICS sovereigns, with the ratings spanning the full credit spectrum.
The report identifies economic scale, growth potential, demographics and domestic funding capacity as important strengths for several members. Government external debt accounts for less than 40% of total government debt in six of the eight rated economies — Brazil, China, Egypt, India, Indonesia and South Africa.
A greater reliance on domestic funding can reduce exposure to exchange-rate movements and changes in international financing conditions.
Several BRICS economies also have significant renewable energy potential, particularly Brazil, China, Ethiopia, India, South Africa and the UAE. According to the report, developing these resources could support energy security, reduce external vulnerabilities and create new investment opportunities.
China, India and the UAE also benefit from sizeable external buffers that can support their ability to absorb global shocks.
Structural vulnerabilities remain
The report identifies high government debt and weak debt affordability as constraints for several BRICS members, including Brazil, China, Egypt, India, Indonesia and South Africa. It notes that improving the cost and composition of debt can be as important as controlling the overall debt burden.
Commodity dependence exposes some economies to changes in terms of trade, export earnings and fiscal revenues. Shallow financial markets can also restrict access to financing and limit policy flexibility.
State-owned enterprise inefficiencies remain a challenge in countries including Egypt, Ethiopia and South Africa, with potential implications for productivity, contingent liabilities and public-sector balance sheets.
External liquidity risks are particularly significant among lower-rated members such as Egypt and Ethiopia, where limited or volatile access to international capital markets can increase exposure to changes in global interest rates, investor sentiment and capital flows.
Five priorities for stronger credit resilience
CareEdge Global identifies five areas that could strengthen the credit fundamentals of BRICS economies.
Fiscal sustainability: Broadening revenue bases, improving expenditure efficiency and strengthening medium-term fiscal frameworks could improve resilience while supporting growth. For highly indebted sovereigns, credible fiscal discipline remains important for maintaining market confidence and policy flexibility.
Stronger institutions: Governance, transparency and policy credibility can determine how effectively economic resources are converted into sustainable growth. The report also suggests that the New Development Bank could have a larger role through stronger resources, a broader mandate and deeper institutional linkages.
Deeper local-currency financing: Greater use of local currencies in trade and investment could reduce exposure to exchange-rate movements and external funding conditions. Expanded currency swap arrangements and improved payment systems could provide additional liquidity and reduce transaction costs.
Deeper economic integration: BRICS members have complementarities across manufacturing, commodities, energy, technology and services. Greater trade integration and participation in regional and global value chains could diversify exports and support productivity. Integration of supply chains in strategic sectors such as energy and critical minerals could also strengthen economic security.
Stronger cooperation and knowledge sharing: Greater policy coordination, exchange of best practices and stronger institutional linkages could help BRICS members address common challenges and convert their collective economic scale into greater institutional strength.
Economic scale needs to translate into resilience
The report states that BRICS' growing economic weight is increasing its significance in the global economy. However, sustaining that influence will depend on strengthening economic and financial resilience.
According to CareEdge Global, credible institutions, deeper financial linkages and stronger member-level resilience will be important in translating the group's growing economic scale into longer-term global influence.