The expert assessed the advantages of Russia's status as the fourth economy in the world

MOSCOW, August 30 - RIA Novosti. The status of a large economy allows Russia to more confidently survive external shocks and provides national companies with a clearer environment for doing business, Kirill Lysenko, leading analyst for sovereign and regional ratings at the Expert RA agency, 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 economy usually copes better with the realities of external shocks, since a significant part of demand and financing is generated within the country,” the expert answered the question of what gives Russia its status as one of the largest economies in the world.

This reduces dependence on the state of individual foreign markets and provides more opportunities to compensate for the worsening external environment with internal sources of growth, Lysenko explained.

“A large domestic market gives domestic companies the opportunity to first grow in an environment that is more accessible to them - with a known consumer, familiar regulation, stable distribution channels and without the additional costs associated with going abroad. This allows them to gain scale, gain manufacturing experience, improve the product and reduce costs, and only then enter more aggressive foreign markets with a stronger competitive position,” he added.