MOSCOW, Russia – Despite years of Western sanctions, Russia will become the fifth largest economy in the world next year, surpassing Germany and the United Kingdom, British bank Standard Chartered said in its long-term growth forecast.
In a report describing projections about the world economy by 2030, the bank said that China will likely bring down the US to become the world’s largest economy sometime next year when measured by a combination of purchasing power parity, exchange rates and nominal gross domestic product.
Beijing will be followed by the USA, India, Japan and Russia in the top five. The top 10 countries will also include Germany, Indonesia, Brazil, Turkey and the United Kingdom.
“By 2020, most of the world’s population will be classified as middle class. Asia will lead the rise of middle-class populations, even as the middle classes stagnate in the West,” said Standard Chartered researcher Madhur Jha.
The report predicted that Asian economies will grow significantly in the next decade, taking seven of the top ten in the list of the world’s largest economies by 2030.
Last week, the World Bank said in its economic outlook it expects Russia’s GDP growth rate to rise to 1.8 percent in 2020 and 2021. The bank said the Russian economy grew 1.6 percent last year, registering “relatively low and stable inflation and increasing oil production”, despite the more restrictive economic sanctions.
The International Monetary Fund (IMF) has raised its forecast for Russia’s GDP growth in 2019 to 1.8%. The positive impact of rising world oil prices on the Russian economy would outweigh the negative effect of Washington’s sanctions, the IMF said.
Meanwhile, official figures from the Federal Bureau of Statistics showed that Europe’s largest economy, Germany, decelerated sharply in 2018. It grew by 1.5% last year, its lowest rate since 2013. A weaker global economy problems in the auto industry were cited as contributing to the slowdown.