The expert spoke about the potential of the domestic market for Russia’s technological breakthrough

Brief retelling from RIA II

At the end of last year, Russia became the fourth economy in the world with a GDP of more than $7 trillion in purchasing power parity.

A large domestic market can become the basis for an industrial and technological breakthrough in the Russian economy.

Localization of foreign supplies and import substitution have become important drivers of the dynamics of the Russian economy after the introduction of sanctions in 2022.

MOSCOW, August 30 - RIA Novosti. A large domestic market can become the basis for an industrial and technological breakthrough in the Russian economy, Anna Fedyunina, deputy director of the Center for Structural Policy Research at the National Research University Higher School of Economics, told RIA Novosti.

According to the results of last year, Russia became the fourth economy in the world - the country’s GDP for the first time exceeded $7 trillion in purchasing power parity, as follows from IMF data and RIA Novosti’s own calculations. The top three global leaders in this indicator are China, the USA and India.

“A large domestic market can become the basis for an industrial and technological breakthrough, as, for example, China has demonstrated. However, of course, a capacious market alone is not enough,” the expert notes.

According to her, the scale of the Russian economy creates real economic advantages. First of all, this is the capacity of the domestic market - Russia is large enough that many technologies, projects and business models make sense without a huge external market.

In addition, and what is especially important, the domestic market is today the most important attractive factor for foreign companies, including Western ones, that maintain a presence on the Russian market, as well as for those foreign companies that enter our market even taking into account sanctions restrictions.

The second is the ability to form our own long value chains and be resistant to external shocks. Localization of foreign supplies for Russian companies and import substitution of individual elements of chains has become one of the most important drivers of the dynamics of the Russian economy after the introduction of sanctions in 2022, Fedyunina emphasized.