IMF: Russia Will Fall Below Turkmenistan In Terms Of Living Standards In Three Years

Now the Russian Federation ranks 68th in the world in terms of GDP per capita.

Russia will continue to lose its position in the ranking of countries in the world in terms of living standards in the coming years, the International Monetary Fund believes.

According to IMF estimates, the Russian Federation now ranks 68th in the world in terms of GDP per capita, which is considered an indicator of the level of economic activity and quality of life of citizens.

Last year, the Russian economy generated $13,648 per capita GDP — 6 times less than the United States ($81,632), four times less than Germany, and almost 10 times less than the world leader, Luxembourg ($129,810).

Over the past 10 years, GDP per capita in the Russian Federation, according to the IMF, has decreased by 16%. As a result, in the world rankings, Russia was on the same level with Mexico ($13,642) and lower than Panama ($18,725), Argentina ($14,024), Bulgaria ($15,854) and Hungary ($22,146).

In the next three years, according to the IMF forecast, Russian per capita GDP will grow by 11%, to $15,146. As a result, Russia will fall back into the eighth dozen of countries and will be behind Kazakhstan and Turkmenistan: the former will have per capita GDP of $15,964 by 2027, and the latter — $15,517. In the future, this gap will only increase: by 2029, Russian per capita GDP will be $15,683 — 15% less than in Kazakhstan ($18,396) and Turkmenistan ($18,202), according to IMF estimates.

Also, according to the fund’s calculations, Turkey ($14,010), the island of Mauritius ($18,124), Malaysia ($17,075), Serbia ($17,823) and the Dominican Republic ($15,925) will be higher than Russia.

In general, the IMF expects Russian GDP growth this year to be 3.2% — the same as the Ministry of Economic Development, which last week presented a forecast for the next three years. The Russian government sets a goal for Vladimir Putin to increase GDP by 20% by the end of his fifth term, a value the economy has not seen for more than two decades.

But IMF experts do not believe in the ambitious forecasts of the Russian authorities. According to their estimates, the growth of the Russian economy will slow to 1.8% in 2025 and only 1.2% in 2029.

As a result, Russia will continue to grow slower than the world average and lose its share of global GDP. Now it is 2.9%, and by 2029 it will decrease to 2.7% — the minimum in the entire modern history of the country, the IMF predicts.