1705508919
The economist emphasizes that such statements are of course exaggerated, but if these are only certain statistical data, then they are the truth and Putin did not lie, however, the context is very important here, wrote the independent Russian publication “The Insider” .
The data used by Putin does not prove that the Russian economy is the strongest in Europe. They confirm that the Russian economy is one indicator ahead of Europe.
Gross domestic product (GDP) represents the value of all goods and services produced in an area over a specific period of time.
Purchasing power parity is a theoretical price comparison calculated based on the price of a basket of goods and services in different countries in the same currency. Purchasing power parity is used to compare the level of economic development in different countries without changes due to different price levels and exchange rate fluctuations.
However, the peculiarity must be taken into account that GDP at purchasing power parity can be high in countries with poor or weak economies if prices in these countries are significantly below the base level.
Mitrofanov emphasizes: In order to make a qualitative comparison of the economies of different countries, it should be done comprehensively, and not only based on individual indicators, as Putin did.
Different economies should be compared according to nominal GDP, GDP per capita, GDP at purchasing power parity, as well as national development index, happiness index and social progress index, says the economist.
Russian economist Vladimir Milov also commented on Putin’s boast that Russia’s economy is “the largest in Europe.”
#FACT #Putin #lives #fairytale #land #Russias #economy #largest #Europe