The International Monetary Fund projects that Russia's gross domestic product based on purchasing power parity will reach approximately $7.34 trillion in 2026. Under this projection, Russia will retain fourth place globally and first place in Europe.
Dr. Anna Erl, an international business specialist at the University of Canterbury in New Zealand, said Russia's large domestic market and industrial production capacity were supporting its economic size.
Industry and technology support growth
Erl said that, despite geopolitical tensions, some Russian companies continued to maintain a strong international presence. Increased production capacity in certain sectors was also having an impact on related areas.
Erl said these developments also included the technology sector and noted that higher production was generating both direct and indirect effects.
Agriculture contributes to exports
Rising agricultural production in Russia is also affecting exports. Erl said growth in exports was contributing to the increase in gross domestic product based on purchasing power parity.
Russia's gross domestic product based on purchasing power parity exceeded $7 trillion for the first time last year. By the same measure, the world's three largest economies are China, the United States and India.
What does purchasing power parity measure?
Purchasing power parity enables comparisons of production and service volumes by taking price differences between countries into account. The method considers the goods and services that can be purchased with the same amount of money in different countries.