During a meeting with business representatives, the President of the Russian Federation Vladimir Vladimirovich Putin told why he made a statement that Russia was in the TOP 5 economies in the world. The President explained that the statement referred to the ratio of currencies of different countries, established by their purchasing power for a certain set of goods.
The head of state gave an explanation for his statement about Russia's entry into the TOP-5 economies of the world.
Perspectives and strategies
According to Putin, it was about GDP at purchasing power parity. The President said that GDP growth has already been ensured in the medium term. The outstripping increase in the volume of investments helped to achieve the indicator. At a meeting at the St. Petersburg International Economic Forum (SPIEF).
The head of state told investors that the country is close to entering the five largest world economies in terms of GDP at purchasing power parity.
This means that the value of the consumer basket will be the same under certain circumstances, regardless of the exchange rate conversion. According to the Head, the state was already included in the "great five", and practically all the time, the state of affairs approached the desired indicator.
The up and down movement is constant. Various circumstances are the reason for such fluctuations. However, the task of the government was and remains to get into and consolidate in the top five. This is exactly what will happen. The President is sure of this. This speech of the Head of State was broadcast on television.
Earlier, the head of the Ministry of Economy, Maxim Oreshkin, in an interview with the RBC channel at the St. Petersburg conference, provided explanations. According to the current assessment of the International Monetary Fund, Russia is ranked sixth in terms of GDP at purchasing power parity, ahead of Germany.
Align forward
The main challenge is to bypass Germany for the next six years. That is, the growth should be four points higher than the German figures. Only in this situation can the state claim to enter the TOP-5.
At the same time, Oreshkin said that it is only by this indicator that it is correct to compare the size of the national economy. According to the decree “on national goals and strategic objectives of the country until 2024”, signed by the President of the country on May 7, 2018, entry into the top five largest economies in the world was named among the top priority goals of the government.
However, the indicators by which the execution of the decree will be determined are not named. The Ministry of Finance and the Ministry of Economic Development and Trade were given the task to prepare a plan for solving this and other socio-economic problems by September 1 of this year.
The national economy of Russia last year ranked sixth according to the IMF. From 2010 to 2014, the country rounded out the top five. However, in 2015 Germany overtook the Russian Federation.
In current prices, the country ranks 12th in the world in terms of GDP. At the same time, the International Monetary Fund pointed out that the Federation's share in the world economy is constantly decreasing. The process began in 2012 and has not stopped.
The IMF is confident that in 2023 the country will drop even lower, reaching seventh place. Indonesia will be ahead of her.
