IMF: Global growth seen shifting to BRICS from G7

Logo of The International Monetary Fund 

The International Monetary Fund said the world economy is set to rely even more heavily on the BRICS than the G7.

The fund expects a bigger share of growth over the next five years to come from powerhouse BRICS economies. By contrast, the expected contribution of Group of Seven members like the US, Germany, and Japan was revised down.

China will be the top contributor to global growth over the next five years, with its 22% share bigger than all G7 countries combined, according to Bloomberg calculations using the new IMF forecasts.

Egypt is expected to add 1.7% to global growth in the period, the same as Germany and Japan, compared with previous estimates of 1.5%.

Meanwhile, Vietnam is expected to contribute 1.4%, equal to France and the UK.

The two smallest G7 economies, Canada and Italy, are expected to contribute less than 1% each to world GDP growth over the five-year period — a lower amount than much poorer countries with larger populations such as Bangladesh and the Philippines.