Smart economy is transforming economic structures towards efficiency and innovation by leveraging new technologies, such as artificial intelligence and the Internet of Things. This study examines the impact of smart economy, particularly through access to digital technologies and e-government, on economic growth and inflation in BRICS countries (Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, the United Arab Emirates, and Saudi Arabia) over the period 2005-2023. Using the fully modified least squares (FMOLS) method, the results show that digital technologies and e-government significantly enhance economic growth, but create inflationary pressures in the short run. Government effectiveness and political stability increase growth and reduce inflation, while budget deficits and employment rates pose obstacles to growth.Cross-country differences, such as China’s advanced infrastructure versus Iran’s and Ethiopia’s institutional constraints, highlight the importance of institutional conditions. These findings are consistent with endogenous growth theories and rational expectations. Policy recommendations include managing infrastructure spending, expanding digital education, strengthening governance, and coordinating monetary and fiscal policies. The study highlights the potential of smartization for sustainable development and offers caveats for controlling short-term inflationary effects.