BRICS: Russia officially becomes Europe’s largest GDP

BRICS founder Russia officially holds the largest GDP in Europe, following a GDP report on Friday. The country’s war-fueled economy has seen a boom in 2024 and is now the continent’s highest GDP in terms of purchasing power parity “PPP”. The World Bank also classifies Russia’s economy as high-income in a new report published this week.

The World Bank upgrades Russia to a high-income country, estimating its gross income per capita at $14,250 per year.

This comes just two years after the West imposed sanctions. Moreover, Russia now has the largest GDP in terms of purchasing power parity in Europe. pic.twitter.com/OEiUoQND71

— BRICS News (@BRICSinfo) July 5, 2024

The BRICS founder has thrived economically despite increased sanctions since the invasion of Ukraine in 2022. Russia’s GDP grew 3.6% in 2023, with trade and financial sectors recovering. The country’s trade grew by nearly 7% last year, while activities in the financial and construction sectors grew by 6.6% and 3.6%, respectively.

“Economic activity in Russia was affected by a large increase in military activity in 2023,” World Bank economists wrote in their report this week. The report confirms that Russia’s military activity and recent actions have indeed boosted its economy. It adds that Russians earned $14,250 per person based on gross national income in 2023.

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Russia along with 2 other BRICS nations own the largest GDPs in the world

China remains the highest GDP worldwide by PP, with the United States a distant second. Russia and India are the other two BRICS countries in the top five globally for GDP, further indicating the bloc’s recent growth.

Within the past year, the BRICS economic alliance has firmly established its commitment to global growth and influence. The bloc adopted its first enlargement initiative since 2001, bringing the United Arab Emirates (UAE), Iran, Egypt and Ethiopia to join the growing collective. They have more fervently embraced de-dollarization initiatives within the bloc. Now, with the largest GDP in Europe and three of the top five countries globally, BRICS is becoming a global powerhouse economically.

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The last point for Russia will be inspiring for other BRICS countries, big and small. Many BRICS economies are expected to continue growing this year. India is projected to emerge as one of the most dominant economies in the world by 2028. Other BRICS nations will also look to challenge the current positions of the G7 countries.

In addition to Russia, the World Bank also upgraded Bulgaria and Palau from middle-income to high-income countries in their latest report. Ukraine also rose from a lower-middle-income country to an upper-middle-income country as real GDP grew by 5.3%.