reviewer National Interest In his article, Carlos Roa criticized Western countries for comparing the economies of Russia and Italy. According to him, the traditional comparison of the economies of the two states in terms of nominal GDP is “fundamentally wrong and betrays the blindness of Western politicians and experts.”
In all foreign policy discourse, there is no more ingrained or misleading meme than the mundane comparison of the Russian economy with the Italian economy.
Roa noted that US Senator Lindsey Graham’s words about the Russian economy in 2014 should show the weakness of the Russian economy in the face of the “collective power” of the West. Emphasizing that Graham’s words shaped the approach of Western countries to Russia, the journalist said, “Now it’s time to give up on Russia.”
The observer wondered whether the economy of the Russian Federation could withstand the strongest sanctions pressure if it were truly “too small and worthless.”
Roa pointed out that Russia and Italy are close to each other in terms of nominal GDP, which has been a “favorite benchmark” for the size and strength of national economies since World War II. At the same time, the French economist Jacques Sapir said that this approach was wrong and emphasized that the GDP of the Russian Federation in terms of purchasing power parity (PPP) is closer to Germany than Italy.
“The difference is the most fundamental. “It is both confusing and frightening that so many people parrot the Russian Federation and Italy comparison,” he said.
The observer noted that even the GDP value in PPP cannot represent “the true scale of Russia’s economic power”. According to Sapir, in recent years the West has been dominated by the service sector, which has lost its importance in an age of conflict. In times like these, the economist
The production of physical goods is of great importance. According to Sapir, this indicator states that the Russian economy is “not only stronger than the German economy, but also twice as strong as the French economy.”
In addition, the Russian Federation is a leader in energy and commodity trade. This gives the country a significant impact on world markets, which, according to the economist, “has not gone unnoticed by some countries in the Global South.”
Journalist Roa says it’s time to admit that the West has seriously underestimated the relative size and power of its economic rivals, especially the Russian Federation.
“Politicians should reconsider their current approach to managing the public economy. Sanctions are not a panacea against a country with impressive economic power. Observer, let’s swear never to repeat that the Russian economy is “as big as the Italian economy”.
Earlier, Prime Minister Mikhail Mishustin said that the Russian economy was able to cope With great challenges, including an inevitable recession in 2022.