BRICS economies strong as Russia outstrips Germany.
Russia’s GDP in PPP terms is outperforming that of Germany, according to World Economics. At the same time, it noted the furious growth seen in China and India over recent years, mirrored by rapid growth in many other Asian nations. These latest figures show that four of the BRICS countries – Brazil, Russia, China and India – continue in the top ten world economies.
Russia becomes Europe’s biggest economy
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.
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 top 10 also included Indonesia, Brazil, and Türkiye.
List of top ten economies (GDP – PPP descending order):
| 1. China | 2. United States |
| 3. India | 4. Japan |
| 5. Russia | 6. Germany |
| 7. Indonesia | 8. Brazil |
| 8. Türkiye | 10. France |
The IMF and World Bank both recently raised their forecasts for the Russian economy, saying GDP would continue to grow despite Western 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.
The Rise and Rise of Asia
“The world economy has radically changed over the past decade. The Asian share of global GDP has risen from 38% to 45%, and is likely to exceed 50% by 2030.”
World Economics
World Economics noted that using 10-year Compound Annual Growth Rate (CAGR) for projections to 2030, the Asian share of global GDP is likely to be over 50%, whereas Europe and North America combined will possibly account for a lot less: about 30%. An extraordinary change in a remarkably short space of time. Clearly mostly a result of the furious growth seen in China and India over the period, but mirrored by rapid growth in many other Asian nations.
Sources:
- World Economics, 4 Aug, 2023. https://www.worldeconomics.com/
- RT News, 4 Aug, 2023. https://www.rt.com/business/580817-russia-europe-biggest-economy/