Comments by "" (@HistoryScope) on "TLDR News EU"
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@DerDop GDP PPP matters for determining the economic potential of a country from a purely internal perspective. So if country A produces 10 cars for 100 dollars each and country B produces the exact same cars but for 1000 dollars, then both countries have produced the same products, but for a different price.
In very simple terms, this is why GDP PPP matters: It accounts for the fact that the same (type of) products can have a different value in different countries because of different currencies. China's currency has a much lower value that the Euro or Dollar, meaning that even while China produces more than the USA or Eurozone, the total value China produces in a single year is lower on the world market.
Why is it relevant for the war in Ukraine?
It's not: Russia's industrial and economic potential (measured in GDP PPP) is roughly 5-6% that of the EU and its allies (USA, Canada, Japan, Australia, etc.). On top of that Russia relies on gas, but you can't make tanks out of gas. So it doesn't even show the war potential of Russia in any way.
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