US and RF Economies Comparison Essay

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It is no secret that the United States (US) and the Russian Federation (RF) have radically different economic histories and therefore adhere to different financial strategies. The 20th-century events were disastrous for Russia and its economy, while the US became a superpower and the strongest global actor at that time. Numbers are the best way to show the economic differences, power, and potential of both countries.

As noted in previous work, the nominal gross domestic product (GDP) of the RF was “1,689.5 current US $ billion” in 2019 (The World Bank in Russia, 2020, para. 2). The US nominal GDP was much higher, namely “$ 21.43 trillion” in terms of the current-dollar in 2019 (Bureau of Economic Analysis, 2020, para. 13). Those who have read the previous work know that the RF GDP per capita was “12011.50 US dollars in 2019” (Russia GDP per capita, 2019, para. 1). Whereas “U.S. gdp per capita for 2019 was $ 65,298” (U.S. GDP Per Capita 1960-2021, 2021, para. 2). The data show that the US economy is significantly more potent than the Russian one.

The numbers above also show that the standard of living in the USA is higher than in Russia. In terms of inflation, the US is doing better than the RF. Researchers claim that “the annual inflation rate for the United States is 1.4%” in 2021 (Current US inflation rates: 2000-2021, 2021, para. 1). RF annual inflation growth was 5.2% in January 2021 (Russia inflation rate, 2021). The last GDP growth in Russia so far occurred in the third quarter of 2020; it “expanded 1.50 percent” (Russia GDP growth rate, 2020, para. 1). US GDP grew by 4% in the fourth quarter of 2020 (United States GDP growth rate, 2020). In both cases, growth may be due to the adaptation of both economies to the conditions of the COVID-19 pandemic and the lockdown policies.