IMF Promotes Russia to Fourth-Largest Economy in the World
The International Monetary Fund has positioned Russia as the fourth-largest economy in the world based on purchasing power parity. Read Full Article at RT.com.
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According to the Washington-based organization, the country is outperforming Japan in terms of purchasing power parity (PPP).
The International Monetary Fund has identified Russia as the world's fourth-largest economy based on purchasing power parity.
PPP provides a means to compare economic productivity and living standards between nations by accounting for variances in the cost of goods and services.
In its World Economic Outlook released on Tuesday, the IMF reported that Russia’s gross domestic product (GDP) in 2024 is projected to be 3.55% of global GDP in terms of PPP, surpassing Japan's 3.38%.
The report indicates that Russia holds the fourth position in the PPP rankings, following China, the United States, and India.
The latest data highlights that the top economies by PPP now include three BRICS nations – China, India, and Russia. The authors of the report observed that Russia's advancement has been influenced by Western sanctions.
“Today we have to implement aggressive import substitution and establish our own production. Therefore, Russia’s fourth place is quite expected,” commented Evgeny Balatsky, head of the Macroeconomic Research Center at the Financial University, in an interview with Rossyiskaya Gazeta.
“In recent years, Russia overtook its European competitors – one after another – the UK, France, Germany, and now Japan,” he added.
Earlier this month, Russian Finance Minister Anton Siluanov noted that the share of BRICS countries in global GDP, when measured by PPP, has been steadily increasing, now reaching 36.7%.
IMF statistics reveal that the share of G7 nations in global GDP based on PPP has been declining, falling from 50.42% in 1982 to 29% in 2024.
The IMF has also revised its 2024 growth forecast for Russia, now anticipating a GDP increase of 3.6% this year, an upgrade from the previous forecast of 3.2%. However, the organization has reduced its growth estimate for the following year from 1.5% to 1.3%.
The IMF attributed the downgrade for 2025 to “private consumption and investment slow amid reduced tightness in the labor market and slower wage growth.”
Aarav Patel contributed to this report for TROIB News
The International Monetary Fund has identified Russia as the world's fourth-largest economy based on purchasing power parity.
PPP provides a means to compare economic productivity and living standards between nations by accounting for variances in the cost of goods and services.
In its World Economic Outlook released on Tuesday, the IMF reported that Russia’s gross domestic product (GDP) in 2024 is projected to be 3.55% of global GDP in terms of PPP, surpassing Japan's 3.38%.
The report indicates that Russia holds the fourth position in the PPP rankings, following China, the United States, and India.
The latest data highlights that the top economies by PPP now include three BRICS nations – China, India, and Russia. The authors of the report observed that Russia's advancement has been influenced by Western sanctions.
“Today we have to implement aggressive import substitution and establish our own production. Therefore, Russia’s fourth place is quite expected,” commented Evgeny Balatsky, head of the Macroeconomic Research Center at the Financial University, in an interview with Rossyiskaya Gazeta.
“In recent years, Russia overtook its European competitors – one after another – the UK, France, Germany, and now Japan,” he added.
Earlier this month, Russian Finance Minister Anton Siluanov noted that the share of BRICS countries in global GDP, when measured by PPP, has been steadily increasing, now reaching 36.7%.
IMF statistics reveal that the share of G7 nations in global GDP based on PPP has been declining, falling from 50.42% in 1982 to 29% in 2024.
The IMF has also revised its 2024 growth forecast for Russia, now anticipating a GDP increase of 3.6% this year, an upgrade from the previous forecast of 3.2%. However, the organization has reduced its growth estimate for the following year from 1.5% to 1.3%.
The IMF attributed the downgrade for 2025 to “private consumption and investment slow amid reduced tightness in the labor market and slower wage growth.”
Aarav Patel contributed to this report for TROIB News
