Overview
Up until the global economic crisis, Russia had enjoyed a nine-year run of rapid economic expansion, averaging 7% in annually GDP growth.
With over 140 million consumers, a growing middle
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class and vast infrastructure needs, Russia is one of the most promising emerging markets. Prior to the economic slowdown, Russian companies outperformed global benchmarks in all major industries. In 2007 foreign direct investment into Russia was $100 billion.
According to Russian Federal State Statistics Service estimates, the real economy has grown by 72% since 2000, and real disposable income by 209% in the same period.
Current Crisis
The global economic downturn has had a devastating effect on Russia’s economy, in June 2009 the World Bank cut their 2009 GDP growth forecast for Russia to -7.9%. The World Bank also sees unemployment reaching 13% and inflation 11-13% by end 2009.
The Russian Ministry of the Economy estimates that GDP shrank by 10.2% in the period January-May 2009, and estimates that by end 2009 Russia’s GDP could contract by as much as 9%.
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