Russia changing

8/7/2019 Russia changing

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CHANGINGRUSSIA

-resented byAKIVHONGANDYRAJMIAO


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EU

NA


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POPULATIONOPULATION


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EXPORTS


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IMPORTS


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OLITICALSITUATION


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ussian Empire


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evolution


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TAND TALL AND GROWINGNOW


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Russia economy

In the 1990s Russian economymoved from a centrally plannedeconomy to a free market system

financial crisis occurred in 1998 dueto the difficulties of implementingfiscal reforms and short-term

borrowing and Asian financial crisisactually exacerbated its financialproblem

The value of Russia currency


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Continued...

a breakdown of commercialtransactions through the bankingsystem

the threat of runaway inflation The Russian economy bounced back

quickly from the 1998 crisis and

enjoyed over nine years ofsustained growth averaging about7%

implementation of key economic

reforms, tight fiscal policy, and


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Continued...

Household consumption and fixedcapital investments both grew byabout 10% per year during this

period Inflation and exchange rates

stabilized due to a prudent fiscal

policy


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Financial crisis in 2008

The global economic crisis hit Russia in2008 and Russias stock market hadcollapsed, as businesses sold shares

to raise collateral for margin callsrequired by international lendinginstitutions.

As the global financial crisis gathered

steam in the fall of 2008, theaccompanying steep fall in globaldemand, commodity prices, andtightening of credit served to almost

grind Russias economic growth


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Russian federation

US$

2005 2006 2007 2008 2009(GDP in

)millions

,764 554

,989 426 , ,1 300 120 , ,1 667 600 , ,1 230 730

GDP percapita ,$5 341

,$6 943 ,$9 149 ,$11 748 ,$8 676


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imports

year imports Ranks Percentagechange2003

,60 700 22

2004,74 800 21 . %23 23

2005,92 910 23 . %24 21

2006,125 000 18 . %34 54

2007,171 500 18 . %37 20

2008,223 400 17 . %30 26

2009

,302 000 16 . %35 18

2010,191 800 18 - . %36 49


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Exports

year exports Ranks Percentagechange2003

,104 600 17

2004,134 400 17 . %28 49

2005,162 500 17 . %20 91

2006,245 000 13 . %50 77

2007,317 600 13 . %29 63

2008,355 500 11 . %11 93

2009

,471 600 8 . %32 66

2010,303 400 12 - . %35 67


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Russias Economic Rank

The economy of Russia is the twelfth largesteconomy in the world by nominal value andthe seventh largest by purchasing powerparity (PPP).

Nominal GDP: $1.679 trillion; GDP rank: 8/191 Per Capital GNI: $9,660; Per Capita GNI rank:

75/210

Population Rank: 9/227

Geographical Area Rank: 1/249

Global Competitiveness Rank:63/133

Economic Freedom Index Rank: 146/179

Human Development Index Rank: 71/182


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Challenge and issues

Russias GDP contracted a less-than-expected 7.9 percent in 2009, Energy andraw material exports, the main driver ofthe post-crisis recovery, appear to be near

their supply-determined maximum The banking system is facing a debt crisis

and credit continues to contract.

Russias old oil deposits, located in well-

developed Western Siberia, are decliningand, in order to sustain even currentproduction levels, oil companies must turnto Eastern Siberia, where deposits are

much smaller and production costs muchhi her


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challenge and issues

Since November 2009, privateconsumption in Russia has grown at asteady average rate of 0.4 percent

driven by recovering wage growth inthe real sector, slowing inflation, anddeclining deposit interest rates inRussian banks.

However, the news may not be as goodas it seems. Because Russian industryis not able to produce a number ofconsumer goods, consumption growth

affects imports more than it helps


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continued...

Another challenge of Russia economyis that banks in Russia was notwilling to lend which made it hard

for the whole economy to grow. the banking system is clearly not

fulfilling its basic function of

transforming savings intoinvestments


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How to tackle those issues?

Russia should accelerate thecomprehensive reform of theeconomy and create a goodenvironment for economic

development. Industrial Industrial restructuring Ownership Reform

Improvement of Financial SystemKeep the dominant position on energy

resources and military prod

Joining the WTO


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OILIL WOODOOD

METALETALATURAL GASATURAL GAS


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LOWPOPULATION

oor and OldInfrastructure


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USINESS WITH( )USSIA N

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