IMF ranks Russia as world’s fourth-largest economy by purchasing power

Russia just clinched fourth place on the global economic ladder, based on purchasing power parity (PPP), in new data from the International Monetary Fund (IMF).

This makes Russia one of the top contributors to global economic growth, moving ahead of several Western economies. PPP adjusts for price differences across countries, giving more weight to nations with large populations and lower costs of living.

With this ranking, Russia now joins China, the U.S., and India in the top four, adding muscle to the economic power of BRICS. In its latest forecasts, the IMF emphasized a future where emerging markets are the heavy lifters.

Unlike prior projections, which leaned on the West, this one points straight to BRICS. Over the next five years, the IMF sees China, India, Russia, and Brazil driving growth far more than the Group of Seven (G7), which includes the U.S., Germany, and Japan.

G7 countries, known for their strong GDPs, are now expected to contribute less, with BRICS economies filling in the gap.

BRICS outpaces G7

Among the BRICS, China is expected to lead the charge, contributing 22% of global growth through 2029 — more than all G7 countries combined. Following closely is India, projected to bring in almost 15% of total growth in the same period.

While G7 members still contribute, their numbers are declining. The IMF’s PPP model shows that developing nations, thanks to their populations and relatively lower prices, are playing a stronger role in the global economy.

In surprising detail, the IMF’s numbers illustrate this trend. Egypt, an emerging economy, is set to add 1.7% to global growth over the next five years, the same as developed powerhouses like Germany and Japan. Vietnam, on the other hand, will match France and the U.K. at 1.4%.

Meanwhile, Canada and Italy, the two smallest G7 members, will each contribute under 1%—a figure smaller than some nations with lower GDP but larger populations, like Bangladesh and the Philippines.

In short, it’s a new lineup in global economic influence, with BRICS countries and others making up for the West’s slowdown.

Russian President Vladimir Putin, speaking at the BRICS summit he hosted in Kazan, openly praised the alliance’s influence as a counterbalance to the West’s “perverse methods.” The summit, attended by 36 countries, marked a win for Moscow’s foreign policy.

This event attracted high-level leaders and, despite U.S.-led efforts to isolate Russia over Ukraine. The conflict was a recurring theme, with United Nations Secretary-General Antonio Guterres making his first visit to Russia in two years.

Guterres called for a “just peace” in Ukraine, aligning his message with the U.N. Charter, international law, and resolutions from the General Assembly. He also called for an immediate end to conflicts in Gaza, Lebanon, and Sudan.

During the summit, Putin responded to recent remarks by former U.S. President Donald Trump, who claimed he would end the Ukraine war. “What Mr. Trump said recently, what I heard, (is) he spoke about the desire to do everything to end the conflict in Ukraine,” Putin said.

“It seems to me that he said it sincerely. We certainly welcome statements of this kind, no matter who makes them.” When asked about North Korean troops allegedly stationed in Russia, Putin neither confirmed nor denied the reports.

The U.S. said 3,000 North Korean troops were training in Russia. Commenting on satellite images of North Korean forces, Putin said, “Images are a serious thing, if there are images, then they reflect something.”

He confirmed that Russian lawmakers had ratified a pact with North Korea on mutual military assistance, part of what Putin calls a “strategic partnership” with Pyongyang.

Expanding financial cooperation and BRICS membership

At the summit, discussions expanded on ways to deepen financial cooperation within BRICS, especially in creating payment systems outside Western control. Russia wants to sidestep sanctions with an alternative payment network to SWIFT, the global bank messaging system.

In a statement, summit members raised concerns over “unlawful unilateral coercive measures, including illegal sanctions” and emphasized the importance of cheaper, safer, transparent, and inclusive cross-border payments.

They committed to reducing trade barriers, ensuring non-discriminatory access, and advancing faster, more efficient payment systems.

The original BRICS has expanded to include Iran, Egypt, Ethiopia, the UAE, and Saudi Arabia. Meanwhile, Turkey, Azerbaijan, and Malaysia have applied for membership, with other countries expressing interest.

At the BRICS Plus session, where additional members attended, Putin condemned the West’s influence, accusing it of:

“Illegal unilateral sanctions, blatant protectionism, manipulation of currency and stock markets, and relentless foreign influence ostensibly promoting democracy, human rights, and the climate change agenda.”

He argued these “perverse methods and approaches” have led to “new conflicts and the aggravation of old disagreements.” He described the Ukraine crisis as an example, saying it threatens Russia’s security, ignores Russia’s “vital interests,” and violates the rights of Russian-speaking people.

Summit participants backed the idea, signing a joint declaration Wednesday that called out the “disruptive effect of unlawful unilateral coercive measures.” They repeated their pledge to boost financial collaboration and enhance intra-BRICS economic support.

China’s President Xi Jinping also shares Putin’s views, emphasizing the need for BRICS cooperation in global security. Xi pointed out that China and Brazil had submitted a peace plan for Ukraine, urging wider international support.

Although Ukraine dismissed this proposal, Xi called for peace talks and said BRICS must take a stand against conflict. “We should promote the de-escalation of the situation as soon as possible and pave the way for a political settlement,” he said.

Putin and Xi’s friendship has only deepened since they announced a “no-limits” deal weeks before the Ukraine conflict started. This year alone, they’ve met twice, once in Beijing and once at the Shanghai Cooperation Organization summit in Kazakhstan.

Putin is also working closely with India, maintaining New Delhi as a strategic ally from the Cold War era despite Russia’s tight relations with India’s rival, China.

Western allies have tried to get Indian Prime Minister Narendra Modi to press Moscow on Ukraine, but he has avoided criticizing Russia, focusing instead on peace and his seemingly close friendship with Putin.