Russia has become the Europe’s largest economy and the world’s fifth-largest economy in PPP terms, surpassing Germany, according to World Economics estimates. Despite Western restrictions on Russia, Moscow managed to increase its economic power, breaking the record of $5 trillion for the first time in history in terms of purchasing power parity (PPP) at the end of 2022, statistics published by the World Bank have shown.
The country’s GDP in PPP terms is outperforming that of Germany, according to World Economics.
Russia was among the world’s five largest economies and the largest in Europe in terms of purchasing power parity (PPP) as of the end of 2022, despite Western sanctions, the latest World Economics report has revealed. Russian economy in purchasing power parity (PPP) at the end of 2022 retained fifth place in the world by this indicator, according to the data provided by the World Bank.
According to estimates based on official country data published by the World Bank and the IMF, Russia’s gross domestic product was $5.51 trillion in PPP terms at the end of last year. The figure is 38% larger than the official estimate of $3.993 trillion, the report noted.
It also showed that the Russian economy was ahead of Germany’s when measured in purchasing-power parity, with the latter’s GDP at $5 trillion.
China topped the list as the world’s biggest economy ($31 trillion), followed by the US, India, and Japan. The second place was taken by the United States with $25.5 trillion. India with $11.9 trillion is the top three rear, while the fourth place was taken by Japan ($5.7 trillion). The top 10 also included Indonesia, Brazil, and Türkiye.
The IMF and World Bank both recently raised their forecasts for the Russian economy, saying GDP would continue to grow despite sanctions, underpinned by strong trade and industrial production, as well as higher-than-expected energy revenues.
According to the World Bank, Russia’s growth is expected to turn positive in 2024, but will remain modest at 1.2%.
The Russian government has maintained a positive outlook for the economy. Prime Minister Mikhail Mishustin has predicted that, by 2024, the Russian economy will be able to overtake developed countries in terms of growth.
IMF raises Russian GDP outlook, again
The International Monetary Fund (IMF) has raised its growth forecast for the Russian economy in 2023 in its World Economic Outlook report released on Tuesday.
Russia’s GDP is expected to grow 1.5% this year, an upwards revision from the 0.7% increase that the IMF predicted in its April report.
IMF chief economist Pierre-Olivier Gourinchas acknowledged that Russia was able to maintain “quite a bit of momentum in the economy” by taking very strong fiscal measures.
The current revision reflects a strong first half of the year in a number of sectors such as retail trade, construction and industrial production, which were boosted by fiscal stimulus, according to the IMF.