Comments by "dixon pinfold" (@dixonpinfold2582) on "The Wall Street Journal"
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@frankfahrenheit9537 Beware such economic comparisons. GDP at market exchange rates is good for judging an economy in some ways (its international financial heft, for instance, or the nature of its trade relationships) but is a distortion in all other ways. When judged by the purchasing power of the rouble domestically, Russia's economy is far larger. In 2021, viewed on this basis, it was about 5% smaller than Germany's, meaning close to $5trn, not $1.7trn.
Neither GDP at market exchange rates (also called nominal GDP) nor GDP at PPP (purchasing power parity) tells the whole story. Looking at both is absolutely necessary. For a valid overall judgement you'd be a lot better off averaging the two than looking at only one.
So my point is that, say what you will about Russia's economic weaknesses, it does indeed have a larger economy than Canada, Italy or Spain, three countries often invoked for comparison. Closer to Germany or Britain. It seems headed downwards in the near future, but let's not get ahead of ourselves.
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