MOSCOW, July 15 (RIA Novosti) – Russia has been ranked as the world’s fifth largest economy by GDP based on purchasing power parity, winning praise on Monday from Prime Minister Dmitry Medvedev.
The World Bank’s new GDP rating published last week ranks the United States as the world’s largest economy by purchasing power parity last year with $15.7 trillion, followed by China with $12.5 trillion, India with $4.8 trillion, and Japan with $4.5 trillion.
According to the rating, Russia overtook Germany last year to rank fifth with $3.4 trillion, versus Germany’s $3.3 trillion. In 2011, Russia’s GDP based on purchasing power parity totaled $3.203 trillion, compared with Germany’s $3.227 trillion.
“I’ve just looked at the news story that Russia has moved to fifth place in the ranking of the world’s largest economies by GDP, edging out Germany. I don’t know the methodology that the World Bank used, probably by purchasing power parity, but this is good news,” Medvedev said.
The World Bank’s rating differs from the nominal GDP rating compiled by the International Monetary Fund, where Russia ranks only eighth with $2 trillion while the US is at the top with $15.7 trillion, followed by China with $8.2 trillion, Japan with $6 trillion, Germany with $3.4 trillion, France with $2.6 trillion, the United Kingdom with $2.4 trillion, and Brazil with $2.4 trillion.
In the World Bank’s rating, gross domestic product is converted to international dollars using purchasing power parity rates, considering that $1 can buy a different number of goods and services depending on the country. In less advanced countries, $1 can buy a larger number of goods, which makes Russia rank higher compared with the nominal GDP rating.