Russia is very close to the top 10 economies in the world in terms of GDP, it follows from the new data from the world Bank. GDP taking into account purchasing power parity (reference the may decree) Russia remains outside the top five
Photo: Vitaly ANEC / RIA Novosti
Russia surpassed South Korea and rose from 12th to 11th place in the ranking of economies in terms of GDP in 2017, from the updated world Bank data. During the year the Russian GDP in dollar terms at current prices increased by nearly $300 billion, from $1.28 trillion to $1.58 trillion. South Korea’s GDP grew from $1.41 trillion to $1.53 trillion.
Russia in this list by a wide margin ahead of three of its partner in the BRICS — China (2nd place), India (6th) and Brazil (8th), Brazil is the closest with a margin of $478 billion.
In the top ten economies occurred only two changes: India surpassed France, rising to sixth place and Brazil — Italy, finishing in eighth place (see infographic).
The world Bank relies on official data of Rosstat, and they include the Crimea and Sevastopol. “Based on these data, the world Bank does not intend to make any judgment on the legal or other status of the affected territories”, — said the Institute. In 2016 (latest available data) total GRP of the Crimea and Sevastopol amounted to about 380 billion rubles, or $6 billion at the current exchange rate.
Struggle for a place in the top five
More suitable for international comparison is GDP at purchasing power parity (PPP equalizes the purchasing power of currencies of different countries). That Russia should enter the top five leading countries in 2024, has set the goal of Vladimir Putin. Before September 1, the Ministry of economy and Finance Ministry has been instructed to develop a plan for performing this task.
By the end of 2017, Russia increased its GDP PPP in current prices from $3.64 trillion to $3,75 trillion, data from the world Bank, but remains as a year ago, on the sixth line. Fifth is Germany, from which Russia has fallen behind on a $445 billion.
The lag from Germany — 4-5%, the goal for the upcoming six-year term, Russia’s economic growth at 4% exceeded the growth in Germany, explained in may, the Minister of economic development Maxim Oreshkin. “The German economy is not an economy that is growing ultra-fast pace. Therefore, we must, of course, show a higher rate of economic development and to work around it in this ranking,” — said the Minister.
According to Rosstat, in 2017, Russia’s GDP grew by 1.5%. This estimate can be improved by 0.3 PPT due to the recent revision by Rosstat industrial production dynamics last year, reported the Ministry of economic development on 12 July. In 2018, the GDP growth will be 1.9% in 2019 and 1.4%, follows from the last macroeconomic forecast of Ministry of economic development. The Ministry be updated, taking into account the April extension of US sanctions against Russia, the tasks of the may decree, as well as the increase from 2019 VAT rates, which will lead to a further rise in prices.