Russia's GDP has now ranked fourth globally! It seems that the more they fight, the richer they become. Remember a few years ago when Russian President Vladimir Putin boldly declared that during his new term, he would lead Russia's GDP into the top five in the world? Many people thought it was a pipe dream at that time. However, after carefully reading some of Putin's words, we realized that he was not referring to the conventional ranking of GDP.
In terms of conventional GDP, Russia's GDP is roughly comparable to that of Guangdong Province in China, placing it around eleventh or twelfth in the world. However, what Putin referred to was GDP based on purchasing power parity (PPP). This calculation method is considered to better reflect a country's actual economic strength. According to the latest data based on purchasing power parity GDP, China has long ranked first globally, by the United States in second place, India in third, and Russia now ranks fourth! Wow, this is quite an impressive achievement, exceeding Putin's expectation of being fifth in the world.
Moreover, did you know that even according to traditional GDP calculations, Russia has maintained a growth rate of over 4% during the past two years while simultaneously engaging in warfare? This growth rate is higher than that of the United States during the same period and significantly outperforms Germany and France. Many people say that during the two-plus years of the Russia-Ukraine war, the United States has been draining resources from both Russia and Europe. But Russia is resilient and strong! Even with ongoing resource depletion, its purchasing power parity GDP has surged to fourth globally. In contrast, countries like Germany and France are facing increasingly dire circumstances.
So, many people are asking why Russia is getting richer despite the war. The answer is twofold: First, Russia's economy is like a fortress, with sufficient energy resources. Oil and natural gas are hard currencies! Just because the West doesn't buy them doesn't mean the East won't. Therefore, the idea of blockading Russia by refusing to purchase its energy is simply impossible.
On the other hand, the West actually aims to create economic chaos in Russia. What does this mean? By denying Russia all goods, the West hopes to replicate the internal collapse of the Soviet Union, where citizens would line up daily, and supermarket shelves would be empty. However, Russia has external support! The markets vacated by the West have been completely filled by Chinese products. From cars to machine tools, from food to various light industrial products, the Russian people suddenly discovered that Chinese goods are not only affordable but also abundant!
As a result, many Chinese students studying in Russia feel a bit dazed while shopping in supermarkets, wondering if they have stepped into a different country. Why? Because all the products in the supermarket are made in China! Yes, today we are the world's factory and a construction powerhouse, with overproduction in almost all goods. Thus, when we browse some shopping websites, we find that prices are incredibly low. Often, you can buy a piece of clothing for just $9.99 with free shipping. We even wonder if the shipping cost can be sustained.
Therefore, supplying a market with just over 100 million people in Russia is nothing significant. For Russia, on one hand, selling energy earns them more money, while on the other hand, importing a large volume from China actually saves them money compared to before. No wonder they are getting richer amidst the war, with their economy soaring to the fourth place globally!
