The Russian Economy

Attacking the West for allegedly restricting Russian foreign investment, he said that the country\’s economy would overtake Britain\’s this year.

"Russia is currently standing in seventh place in the world," he said.

"According to international experts, it can climb another step as early as this year and overtake Britain."

Britain has the fifth largest economy in the world, while Russia is in 10th place, although its ranking climbs if judged by purchasing power parity.

Not all that much of a surprise, that three times as many people, fuelled by record oil prices, should have a larger economy in total.

What will happen when the inevitable (and I do think it to be so) fall is said oil prices happen is a little different.

3 thoughts on “The Russian Economy”

  1. It doesn’t make a lot of sense to judge the size of a country’s economy using PPP figures, does it? Surely PPP figures are only useful when comparing living standards.

    Tim adds: There’s some truth there. But per capita (without PPP adjustment) does make some sense.

  2. Ross, it’s a good question, but I think probably it does. If you think about it what we have is a calculation of output in dollars, or sterling, and a calculation of a different economy in roubles. And we need to put them into a common currency to compare the size. What rate do we use? The market rate has its advantages, but they’re not overwhelming.

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