Putin: Russia has Become the Fourth Largest Economy in the World in Terms of Purchasing Power Parity

Countries around the world are racing to strengthen their sovereignty. The Russian president said so Vladimir Putin at the plenary session at the St. Petersburg International Economic Forum (Spief).

“We see that a real race has begun by countries to strengthen their sovereignty. It takes place at three key levels: state, cultural and economic,” the president said. “At the same time, countries that have recently acted as leaders of global development are trying with all their might, both good and bad, to maintain a hegemonic role,” Putin continued.

The president also highlighted that the world is now witnessing “explosive technological growth that is changing all areas of life.”

“Russia has demonstrated a high level of readiness and susceptibility to technological transformations,” Putin argued. “We see how our financial sector, e-commerce, transport services sector, public administration system have already changed.” The head of the Kremlin highlighted that similar processes of transformation are also starting in the defense sector, where Russia “also needs a high level of technological renewal. This is a crucial and decisive issue for our country,” underlined the Russian president.

Despite all obstacles and illegitimate sanctions, Russia remains a major player in world trade, actively developing the logistics and geography of cooperation, according to Vladimir Putin. The Kremlin head also noted that three-quarters of all Russia’s trade is linked to “friendly countries.” In particular, in the period from 2020 to 2023, Moscow’s trade exchanges demonstrated a 60 percent growth with Asian countries. Additionally, trade with the Middle East has doubled. Trade with Africa also increased by 69 percent and with Latin America by 42 percent.

Putin then highlighted the need to pay attention to the economies of “rapidly growing” states, because “it is up to them to determine the future of the global economy”. The Russian leader also added that trust in Western payment systems has been “completely undermined by Western countries themselves.” “In this regard I will note that last year the share of payments for Russian exports in the so-called ‘toxic currencies’ of hostile states was halved,” he underlined.

The Russian president stated that the Brics group countries are developing their own payment system, independent of the Western one. “The Brics are working on the formation of an independent payment system that is not subject to political pressure, abuse and external interventions (…),” noted the president. According to Putin, BRICS also has great potential for the accession of new members, adding that Russia will welcome and support such desire of interested partners.

The head of the Kremlin highlighted the need to strengthen “financial, technological and personnel sovereignty”, also increasing the production capacity and competitiveness of Russian products, both in foreign markets and in the domestic market. “The result of the development of such a model, the economic model and supply, among other things, should be a reduction in the level of imports to 17 percent of GDP by 2030,” Putin said.

“At the end of last year, as you know, Russia’s GDP growth amounted to 3,6 percent. And as of the first quarter of this year, it stands at 5,4 percent. That is to say, our rates exceed the global average. Especially when such dynamics are primarily determined by non-resource industries,” the Russian leader noted. Putin added that Russia must ensure stable high rates and the quality of long-term economic growth, as well as develop the capital market and increase its attractiveness.

Russia has become the world’s fourth largest economy in terms of purchasing power parity, overtaking Japan and Germany, Putin said. The President referred to a recent World Bank report. “We understand (…) that leadership positions need to be constantly confirmed and strengthened. Other countries are not standing still either,” Putin said.

“I propose to resume the increase in pensions for retired workers from next year,” the Russian president announced. “From February 2025, XNUMX onwards, pensions will increase not only for those who have already gone on well-deserved rest, but for those who continue to work.”

The president said that Russia is interested in collaborating with countries that have a mutual interest in working together. “We are open to the widest cooperation with all interested partners, foreign companies, countries, associations,” Putin said.

The share of tourism in Russia’s GDP is expected to grow to 5 percent by 2030, Putin continued. The number of trips across the country with hotel accommodation is expected to rise to 140 million people. “We will create a comfortable and convenient environment for leisure, including the construction of hotels and small campsites, ski resorts and amusement parks,” he added.

“The global economy has entered an era of serious and fundamental change. A multipolar world with new centers of growth, investment and financial ties between states and businesses is taking shape. The Russian economy is responding to these challenges and is also changing dynamically,” the Russian leader noted. Putin added that Russia will continue to support positive changes in society and the economy.

By 2030, the minimum wage should be at least 35 rubles a month (363 euros), the Russian president later said. The head of state explained that in 2025 wages will grow by around 15 percent to 22 thousand rubles a month (228 euros), highlighting how citizens’ wages must grow “faster than the national economy”.