In the first three quarters of 2023, Russia's economy grew at a good pace, with a year-on-year growth of 3%, of which it soared to 55%。This shows that Russia has successfully coped with the sanctions pressure of the United States and Europe after strengthening the transformation of its industrial structure and developing its foreign relations to the east. Putin has repeatedly mentioned that Russia has gone through the most difficult period.
It is worth noting that compared with Russia, Germany, whose economy is highly dependent on the external market and whose business orders are highly dependent on exports, is facing an energy crisis. More precisely, Germany took the initiative to give up the low-price advantage of Russian energy and instead purchased from the United States, Canada and other energy countries, resulting in a large number of enterprises being forced to relocate. Coupled with the across-the-board inflation triggered by the energy sector, the German economy had to fall into recession, falling by 04%。The total value of imports and exports in Germany is 220335.7 billion euros, with a total GDP of 30,522300 million euros, foreign trade dependence as high as 7219%。Germany's economic development is highly dependent on external circulation, and this is a question that any rational ruler should ponder.
German Chancellor Olaf Scholz does not seem to be aware of the characteristics of Germany's economic development, and insists on abandoning the liberal ** strategy implemented for many years, and imposes sanctions on other countries together with the United States, which has a "high degree of internal economic circulation". This is obviously an act of self-inflicted damage of 1,000 and killing 800 of the enemy, and it is Germany itself that is compensated.
However, in addition to the price factor, there are also certain positive factors in the German economy. Although the quantity of goods produced is insufficient, this deficiency can be compensated for by prices**. At the same time, Germany can also use the euro exchange rate** to drive GDP expansion in dollar terms. In the first three quarters of this year, Germany's GDP in US dollar terms increased to 3,306.5 billion under the dual stimulation of inflation and exchange rates, surpassing Japan's GDP scale and rising to third in the world. This situation is very frustrating for Japan, even though the Japanese economy has increased by 1 year year7%, the economic vitality is significantly higher than that of Germany, but the victory brought by Germany's dependence on inflation and the appreciation of the currency exchange rate is considered "false". It can be seen that economic rankings are not only determined by real economic growth, but are also affected by factors such as inflation and exchange rates.
At the same time, Russia and South Korea are experiencing similar problems. Although the Russian economy grew by 3% in real terms in the first three quarters, it depreciated by 15 percent due to the continued pressure on the ruble exchange rate by the United States and Europe6%, resulting in a drop in GDP in dollar terms to 1,433.6 billion, and the global ranking slipped to 11th. South Korea's economy grew by 1.2 percent year-on-year in the first three quarters9%, although the growth is not very prominent, but at least it is positive. However, the South Korean won did not perform well in exchange terms, with GDP falling to 1,267.1 billion in dollar terms, ranking sharply** to 14th in the world. This situation shows that economic growth, while present, has led to a decline in the global ranking due to inflation and exchange rates that are not as good as those of other countries.
Against this backdrop, we can no longer place as much emphasis on "exchange rate based GDP" as we have done in previous years. Statistical rules such as purchasing power parity indices should also be referred to to obtain more scientific and rational comparisons. The same applies to both China and the United States, where the purchasing power ratio of the renminbi to the U.S. dollar is about 3., according to data published by the World Bank99, i.e., within China, 3The purchasing power of 99 yuan is roughly equivalent to 1 US dollar. According to this calculation, China's GDP has long surpassed that of the United States, ranking first in the world. However, in exchange rate terms, in the first three quarters of this year, China's GDP shrank slightly in dollar terms, to 130157 billion, compared to 20 percent of the United States$278 trillion, the gap widens. Although there is an overvaluation problem in purchasing power accounting, China's GDP is significantly undervalued in the context of the general undervaluation of the RMB exchange rate, as well as between high inflation in the United States and deflation in China.
In addition to the above-mentioned countries, in the global GDP ranking for the first three quarters of 2023, India is firmly in fifth place, with an economy size of nearly 26 trillion US dollars, an increase of 71%, ranking first among the top 15 countries. The UK's GDP is just over 2$5 trillion, ranking sixth;France is in seventh place with a GDP of just over 2$24 trillion. Italy is eighth, Brazil is ninth, and Canada is in the top 10. Mexico rose to 12th place globally, Australia 13th, South Korea 14th and Spain 15th. In addition, Indonesia's GDP has also crossed the trillion dollar mark, ranking 16th.
In short, it can be seen from the above data that there have been some changes in the global GDP ranking in the first three quarters of 2023. Russia has achieved an economic recovery and has risen in the global rankings;Germany's economic development is plagued by the energy crisis, which has led to a decline in the economy;Other countries such as India, the United Kingdom, France, Italy, etc., also occupy a certain position in the global economy. At the same time, we also need to note that the GDP calculated by the exchange rate method may not be completely accurate, and other factors, such as the purchasing power parity index, should be considered comprehensively to obtain more scientific and accurate comparison results.