Russia breaks into world’s top five economies, eclipsing Germany

According to data published by the World Bank this month, Russia has leapfrogged all the European Union (EU) nations to become the world’s fifth largest economy in terms of gross domestic product (GDP) using purchasing power parity figures, which adjusts for differences in the cost of living in different countries. Russia’s $3.4 trillion GDP sees the country push Germany, which had a GDP of $3.3billion, out of the top five and into sixth place. The United States is ranked as the world’s largest economy at $15.7 trillion, while China ($12.5 trillion), India ($4.8 trillion) and Japan ($4.5 trillion) completed the top five. Using nominal dollar figures, however, Russia would rank in eighth place.  

Russia’s rise comes ahead of the country’s accession to the Organisation for Economic Cooperation and Development (OECD), currently slated to take place in 2015. While Russian resilience in the face of testing economic conditions elsewhere in Europe may have surprised some, many experts have pointed to favourable oil prices aiding Russian growth. Whether this good economic news attracts increased foreign investment, however, remains to be seen with political, social and cultural concerns weighing heavily on the minds of many potential investors.

The Tap Blog is a collective of like-minded researchers and writers who’ve joined forces to distribute information and voice opinions avoided by the world’s media.

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