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Russia’s GDP to Join Top 10 Nominally
Russia’s GDP soared 8.2 percent on year in June of 2007 and showed the H1 growth of 7.8 percent, Vice Premier Alexander Zhukov told President Vladimir Putin yesterday. Today’s pace of economic growth is not only higher than a year ago (6.6 percent %) but it is also above the rates manifested by other developing nations, but for China of course.
According to the Economist Intelligence Unit, the growth in Brazil’s GDP averaged 2.4 percent from 1994 to 2004, Russia had 2.8 percent, India manifested 6.1 percent and China topped the list with 9.1 percent. But in Russia, the acceleration began only in 1999, so the average results calculated for shorter period would be much more advantageous.
The growth indicators of GDP are traditionally matched in real terms, i.e. in conditional and constant prices. For the state-to-the state comparison, the analysts use either the nominal GDP calculated in the U.S. dollars under the current exchange rate, or the GDP adjusted to the purchasing power parity (PPP).
Both approaches have some advantageous and disadvantageous. When comparing the nominal GDP, the size of emerging economies with the underestimated currency is also underestimated. The PPP approach creates illusion of big chances in authorities of the countries with underestimated national currency.
According to the scale of World Bank, Russia was the 11th worldwide in 2006 in terms of nominal GDP ($0.99 trillion), but it climbed to the 10th position under the PPP approach ($1.73 trillion), closely following Brazil (the countries are likely to change places in 2007). Of 15 biggest economies of the world, GDPs of China, India and Russia are mostly underestimated.
www.kommersant.com
All the Article in Russian as of July 25, 2007
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