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At the start of Feb 2025 USD was 100 RUB, a few days ago it was 85 RUB. Does this mean their nominal GDP grew by 15% in one month? In some cases it's fine to us
by xybercow 2y ago
At the start of Feb 2025 USD was 100 RUB, a few days ago it was 85 RUB. Does this mean their nominal GDP grew by 15% in one month? In some cases it's fine to use Nominal GDP while in other cases, you should use GDP PPP instead. When you look at PPP figures, Russia's economy is on par with Germany or Japan. https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP) https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)
Anders Puck Nielsen just published an interesting video on this topic [How does Russia's military spending compare to Europe?](https://www.youtube.com/watch?v=rxq-TvgNCBU https://www.youtube.com/watch?v=rxq-TvgNCBU)
- JumpCrisscross 2y ago> When you look at PPP figures, Russia's economy is on par with Germany or Japan The Russian economy cannot produce half of what Germany or Japan can. That means they have to import it. Which means the truth is somewhere between PPP and nominal GDP. (The simplest statistical treatment is to PPP domestic industries and nominalise imports, but that’s really an analysis one must do oneself as the assumptions are too numerous for convincing someone who’s already concluded adversely.)
- snailmailstare 2y ago> Does this mean their nominal GDP grew by 15% in one month? If they could keep selling in rubles without a fall in exports or prices then the month's contribution to GDP was 15% higher than the previous one. That doesn't seem very confusing.