In the first half of the year, Russia's GDP was only about 0.7 trillion US dollars.
According to reports, in the first half of 2020, Russia's social GDP was about 486,058.5 billion rubles, equivalent to 0.7 trillion US dollars, ranking 12 in the world. The first place is still the United States. In the first half of the year, the economy actually decreased by 4.4% year-on-year, and the GDP 10. 14 trillion US dollars was completed.
10. 14 trillion dollars is about 14.5 times more than 0.7 trillion dollars! In other words, "according to the economic aggregate, the United States is now equivalent to 14.5 Russia." Is the economic gap so big? From the perspective of exchange rate, the economic gap between the United States and Russia is indeed so big, but from the perspective of purchasing power, the gap is much smaller.
How big is the purchasing power gap between the United States and Russia?
There is a big flaw in calculating GDP at exchange rate, that is, "the US dollar is often overvalued and other currencies are usually undervalued". Take The Economist as an example. After counting the latest "Big Mac Index", they said that the Russian ruble is one of the currencies that are seriously undervalued.
The IMF and the World Bank have repeatedly pointed out that the Russian ruble is undervalued. According to their published GDP data measured by "purchasing power parity", the GDP of the United States in 20 19 was about 2 1.43 trillion dollars, while the Russian economy exceeded 4.28 trillion dollars.
The advantage of the American economy over Russia has suddenly dropped from "14.5 times calculated by the exchange rate method to about 5 times". This has undoubtedly greatly enhanced the position of Russian economy in the world-ranking sixth among China, the United States, Indian, Japanese and German combined.
Not long ago, Russian officials said that Germany may be overtaken by 2020, and GDP will rise to the fifth place in the world. It is not the GDP converted according to the exchange rate, but the economic aggregate converted according to the actual purchasing power of the Russian ruble relative to the US dollar.
This method is also applicable to China and India. In exchange rate, China ranks second in the world, and in purchasing power, it surpasses the United States and rises to the first place in the world. In terms of purchasing power, India's total economic output exceeds 10 trillion US dollars, surpassing Germany and Japan at once, ranking third in the world.
This is the problem. Do you think: comparing the economic aggregates of different countries, is it more effective to convert GDP by exchange rate or more meaningful to convert economic aggregates by purchasing power? Speak your mind and let's discuss it together! This article was compiled and written by Nansheng. Please do not reprint or copy without authorization!