Russia is now the biggest European Economy in the World ranking 5th

[Kloitra]

of course india has more economic weight than germany it has 1.2 billion people who need food, stand up everyday and do something its logical that india has bigger economy and more economic activity than germany. But of course for 1 billion people thats not enough to have significant living standard to challenge german industries and other advanced economies, if indian economy would be one day like chinas succeeding 7 or 10 trillion you will see a lot of change would have taken place and people would view indias economic weight differently.

??? You totally misunderstood. I clearly said that German economy has more importance despite being smaller PPP wise, because nominal GDP matters.

 

[Wright]

??? You totally misunderstood. I clearly said that German economy has more importance despite being smaller PPP wise, because nominal GDP matters.

Isnt it better if you money is lower in value- China purposely devalues its currency to export more - so Germany is at a disadvantage compared to India?

Im not from economics background - forgive my noobness.

 

[Kloitra]

Isnt it better if you money is lower in value- China purposely devalues its currency to export more - so Germany is at a disadvantage compared to India?

Im not from economics background - forgive my noobness.

It goes both ways.

Countries like China can profit from it cause they still maintain +ve trade balance. More exports, less imports. Lower currency makes the exports more competitive, thus increasing the sales. This negates any effect on trade balance while increasing the rotation of money within the country. Good thing. India is not export oriented. It barely manages the trade deficit, which is currently negative. So any reduction in currency value actually hurts the economy. Three big exports of India, IT, petroleum products and gems are not affected. IT exports do not increase directly with lower currency values, while gems and petroleum are first imported, processed and then exported. Thus there prices remain unaffected. Biggest imports meanwhile, oil and gold suffer directly. So the current fall of currency is badly affecting the economy.

But this is all about economic growth/growth prospects of a country. Its standing in the world is not measured so much by growth but current economic status. For that, it is nominal GDP that matters. As I said in the example of Canada and India, even with so much disparity in PPP, the nominal economy is almost same. Thus, capacity to spend is same. This is how the standing is measured around the globe, how much money can the country spend. For eg, lets suppose PPP wise, India can buy 4 loaves of in house made bread while Canada can one. But if both go to a third country, say US, both would be able to buy 2 loaves, thus have same standing.

PS: I am a noob in economics too , so sorry for any mistakes..

 

[vostok]

Putin said that Russia will have GDP per capita on level of Portugal, which is a "golden billion" state, this or next year.
GDP Per Capita (PPP), US Dollars for Russia in year 1995 is US$ 6,421.58
year 2013 - 23,549 $

 

[Genesis]

Russia must be doing better than I thought, cause from what I been hearing from western media, Russia pretty much fell in a hole.

 

[vostok]

Russia must be doing better than I thought, cause from what I been hearing from western media, Russia pretty much fell in a hole.

You will never hear well about Russia from liberal media - exept may be in 90's, when the whole floor in building of State Duma (Parliament) was occupy by Americans. And 10000 "advisers" and "counselors" worked in state institutions.

 

[Jade]

PPP - why is it not considered not as important as nominal?

Both are important in their own way, with each having their own drawback

PPP is mostly useful in discussing per capita GDP and individual relative incomes and costs, while nominal GDP tells you how much value your economy produces as compared to other countries in the world market, however, nominal doesn't necessarily tell you whether a Chinese or an Indian or a German can afford food and rent right in their domestic markets.

In short: When talking about welfare of the citizen, PPP is good measure
When talking of the economy's relative strength in the world market, nominal is good.

 

[American spying]

Well done Russia, a strong Russia is needed for geopolitical balance.

 

[Gessler]

Good going.

This will also make BRICS stronger.

 

[kawaraj]

Russia strong team you guys have nice work.

The West can easily overthrow Russian boat by slashing down oil price. Think about brunt @40 dollar....

 

[Prechko]

Russia strong team you guys have nice work.

The West can easily overthrow Russian boat by slashing down oil price. Think about brunt 40 dollar....

Why don`t they slash oil price? If it`s that simple. As long as central banks run expansionary monetary policy , in this case FED , because oil is priced in dollars , oil is going to be high and also drilling oil now days is more expensive , with 40 dollars per barrel , ALL oil producing countries will stop selling it because it`s not profitable.

 

[kawaraj]

Why don`t they slash oil price? If it`s that simple. As long as central banks run expansionary monetary policy , in this case FED , because oil is priced in dollars , oil is going to be high and also drilling oil now days is more expensive , with 40 dollars per barrel , ALL oil producing countries will stop selling it because it`s not profitable.

It's days away from shale use.

 

[kawaraj]

kawaraj, i'd gladly sever your windpipe

Then I will use yours.

 

[UKBengali]

So? Some nations are even more resource rich, yet fail to capitalize. Not to mention Russia's defence industry is faring better than dying UK and Bengali defence industry. UK is done for, so is Bengladesh. Russia has a future.

UK is done for, what makes you say that Bangladesh is as well?

Nothing wrong with 6%+ GDP growth rate per year.

 

[senheiser]

It's days away from shale use.

so typical ignorant statement

-shale oil accounts only 10% of the world reserves and russia has the biggest reserves.

-almost all top 10 biggest companies are oil and from net importer countries, if price goes down they are bankrupt. They would shoot themselves in the food.

-manufacturing is also strong in russia