The landscape of the global economy is changing every so often. Recently India surpassed the UK to become the 5th largest Nominal economy in the world. Now, according to the data from the IMF (International Monetary Fund) Indonesia is all set to surpass Russia to become the 6th largest economy in terms of PPP (Purchase Power Parity) by the year 2026. Indonesia is a small country and for it to surpass Russia is a big deal.
Everybody expected that Indonesia would surpass the Russian economy one day, but nobody anticipated that this would happen so soon. Experts believe that there are many reasons for this. First and foremost, the Russian invasion of Ukraine has also left Russia broke. The sanctions on Russia are bringing the nation down. Additionally, Russia’s workforce is also depreciating. The mean age of Russia has gone up to 40 years, while the mean age of Indonesia is down to 30. Additionally, Indonesia is also focusing on building infrastructure mainly to increase its exporting capabilities. It was recently announced that Indonesia will be building a zero-emission nickel plant for export purposes.
While Russia’s workforce is shrinking, Indonesia continues to improve as new workers join the workforce with good educational backgrounds and important skills. The same is the case with India. In this way, India and Indonesia are somewhat similar as the reason behind both countries’ economic growth in recent years can be credited to their young and educationally strong workforce.
Previously it was estimated that Indonesia would surpass the Russian economy no earlier than 2028, but recent development has suggested that it might happen even before 2026. This shows how the global economic power axis is shifting and how Asia is becoming the next big thing in the world.