Russia returned to the top ten of the strongest economies in the world: what to expect in 2023

At the end of 2022, Russia was once again among the ten strongest economies in the world.

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At the end of 2022, Russia was once again among the ten strongest economies in the world. The study was conducted by the International Monetary Fund.

If in 2021 Russia ranked 11th in a similar ranking, in 2022 it moved to 9th place. Now, in terms of GDP, we are ahead of Italy, Brazil and South Korea. The GDP indicator amounted to 2 trillion and 133 billion dollars, which placed our country in ninth place in the ranking.

“The sanctions are definitely working,” laughed social media users in response to this news.

According to Visual Capitalist, citing data from the International Monetary Fund, the top three in terms of GDP were the United States, China and Japan.

– If, with a declining GDP (and in 2022 it officially fell, although not as much as expected), we move to the top ten, that means that in other developed countries GDP fell even more than ours. They have very high inflation and relatively weak growth. Those countries where the difference between nominal growth rates and inflation was not that great remained high. Even China has slower growth in 2022. What can we say about the EU member states, where inflation was 9-10% per year? That is, inflation won growth, economist Denis Raksha explained to KP.RU.

According to him, in Russia the drop in GDP was relatively small (less than 3%), although at the beginning of the year the drop was forecast to be between 6 and 10%. This is due to high government spending, mainly on defense. Russia stopped sending “extra” money to the National Wealth Fund and, vice versa, began to spend it. Previous savings went to the budget and public spending.

“And in the West, nobody did this this year, they did it before, during the pandemic,” Denis Raksha explains.

Regarding the forecasts for 2023, according to the economist, Russia may fall back to lower positions in the ranking.

– In 2023, such high revenues from energy exports are not expected. After a year with a high base, it is difficult to maintain the same rate of growth. Therefore, in 2023, Russia will most likely not stay in the top ten, Denis Raksha believes.

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