Russian Economy General News: #1

medo wrote:Russian industry and agronomy production is growing and they sell less crude oil wood, etc, but more of their products, which have higher price in World's markets. Where is here recession? True, bankrupt EU and US will buy less, but Russia wisely reoriented its export economy on other markets like in Asia, Africa and Latin America, which are rich with natural resources and with population and where middle class is growing. Africa is poor, true, but Latin America have incredible potential and trade with states, like Brazil, Chile, Argentina,... on equal level, could quite quick replace EU market.

Why the Russian economy will not face any threat .

requiring bailouts a small recession in Russia is nothing to fear.

The global crisis is taking an even more dangerous shape, which
inevitably affects us as well,” Putin said at a meeting with Prime Minister
Dmitry Medvedev.
“This is how it was in 2008, and now we are witnessing the same thing.
However, unlike our friends and partners in Europe and other parts of
the world, the Russian economy is showing vitality and prospects of further growth," Putin said.

gaurav wrote:I hope this will be a small recession only.

Viktor wrote:

gaurav wrote:I hope this will be a small recession only.

I don't see any recession this year in Russia no matter what`s going on in neighborhood.

Austin wrote:I think what really counts from a country and its people POV is Per Capita Income.

Russia leads in Per Capita Income when it comes to BRICS but lags far behind when you compare to Western Nations

Economic Development Minister Andrei Belousov has warned that Russia has "three, four, a maximum of five years" to carry out structural reforms to the economy before the global energy balance changes, possibly leading to a 20 percent to 30 percent drop in oil prices and economic stagnation.

"It is critically important that Russia enters that period with at least the main parameters of the reforms completed," Belousov said Monday at a staff meeting at the Economic Development Ministry.

He said Russia should conduct large-scale reforms equivalent to 7.5 percent of the country's GDP, or 3.5 trillion to 5 trillion rubles ($112 billion to $160 billion) per year for the next five years.

The reforms should be carried out in health care and education, the pension system, utilities, the armed forces and civic infrastructure, he said.

The government should also undertake measures to develop non-mineral sectors of the economy and promote the development of the Far East and the Kaliningrad region, he said.

Belousov noted that unless Russia can bring its annual economic growth to 5 percent to 6 percent, the reforms would not succeed and "the window of opportunity" will be lost.

Observers said the minister's broad call for reforms went beyond the more specific objectives that ministers usually focus on, Vedomosti reported.

Belousov's plan may reflect his growing influence ahead of his possible move to the Kremlin, where he may replace Elvira Nabiullina as a presidential economic aide. Nabiullina was recently appointed as head of the Central Bank, observers said.

TheArmenian wrote:They are about to overtake Portugal (a European Union nation) and in a few years they will overtake others.

Austin wrote:

TheArmenian wrote:They are about to overtake Portugal (a European Union nation) and in a few years they will overtake others.

Overtaking Germany , Italy , France or UK will take a long time , may be 20 years if they grow 4-5 % anually

Check this http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28PPP%29_per_capita

The reforms should be carried out in health care and education, the pension system, utilities, the armed forces and civic infrastructure, he said.

The government should also undertake measures to develop non-mineral sectors of the economy and promote the development of the Far East and the Kaliningrad region, he said.

GarryB wrote:Yeah, of course money makes you happy...

That is more accurately described as a smugness index for rich countries to pretend they are better than other countries.

Look at the highest earners and you think life might be much better there than here but if you really look at the raw figures you will find that in those countries 10-15% have all the money and land, there is a middle class that know they are not poor, but could not call themselves rich and there will be the poor who live from day to day just staying ahead of the bills by working three or four jobs.

Russia should not use the same measuring stick as the west to determine progress because that road does not lead anywhere worth going... they would in fact be much better off with communism where there was the powerful small percentage and the rest were pretty much equal.

Obviously the ideal is no rich and powerful and resources spread evenly for everyone so no one was poor, but there is little chance of any political or economic system delivering that.