RUSSIA will become $5 trillion Economy in the Next 6-7 years.
Oil Price volatility Is hurting Russia's Economy. ECONOMIC
DIVERSIFICATION needs in RUSSIA ,Oil based Economy to manufacturing ,tourism and Agricultural,Russia could reach USD 5 trillion by 2027,currently Russia USD 1.6 trillion.
Russia is a major player in oil and gas production worldwide. It is the second largest producer of natural gas and the third largest producer of oil.
Oil and gas are responsible for more than 60% of Russia's exports and provide more than 30% of the country's gross domestic product (GDP).A dip in oil prices between 2014 and 2016 caused big losses to the Russian economy.
Oil Price ⏫and Russia Economy ⏫.
GDP of Russia grew $280 billion in 2000 to $1800 billion ($1.8 trillion) in 2008....near 7 fold jump.
At that time oil prices began to recover from their low of $10 per barrel (year 2000) and over the next decade climbed inexorably to a peak of about $150.
crisis started in 2014 -2016, oil prices decreased $ 75 to $50 , GDP value back to $1.2 trillion ... Russia still a Oil based country.... If it continue ,GDP may back to $1trillion or less..... Oil Price Volatility Is Hurting Russia's Economy.
Future Trends of Global oil market
Accroding to Stanford economist Tony Seba ,Electric vehicles will kill global oil industry by 2030.
I think Economic diversification nasseary in Russia.Oil based Economy to manu-facturing,tourism and Agricultural.
We know in 1960s and 1970s, the country that was the big growth story due to high demand in oil.we know at that time, Its space program grew; its military program grew; and it became much more industrialized.
But in 80s global oil consumption slowed ,which stoped the amazing growth story of Soviet . The Soviet Union became the Former Soviet Union in late 1991.
Russia Economy under president Vladimir Putin.
1◆Quality of life increased almost triple -Before Putin’s election, Russia had a $9,889 GDP per capita by Purchasing Power Parity (PPP). The figure had almost tripled by 2017 reached $27,900.
The average nominal monthly wage has grown almost 11-fold from $61 to $652. Unemployment has contracted from 13 percent to 5.2 percent. Pensions have grown over 1,000 percent in the same period from $20 to $221.
2◆Russian gold reserves have increased by more than 500 percent since 2000.
3◆ Russian foreign reserves increased $12.5 billion(year 2000) to $530 billion...has grown almost 42 fold.
4◆ Reforms in Banking sector#Healthy and robust banking system is important for the health of the modern economy.
reforms in Banking sector one of the major steps under putin govt,in 1990s thousands of small bank were set up in Russia ,now the number of bank fallen from 4500 to 500 today ,reforms make easier to regulate.
5◆ poverty rate decline from 29% in 2000 to 10.7% in 2012.
6◆Ease of doing business rank has improved,Ranked 31 in 2018 from Ranked 124 in 2010.
Needs to focus on Tourism
Russia has huge potential in Tourism.....tourism industry could contribute 15% to GDP, but current level 4%.
Needs to focus on R&D
Russia currently spends around 1% of its national income on R&D needs at least 2.5 %.
Needs to focus on SMEs
The contribution of small and medium-sized businesses to GDP is only 20%, needs at least 40%.
Small Businesses contributes 50%,57%,60% and 70% of U.S.,Germany, China and Japan Economy.
The above fig shows In developed countries small and medium-sized enterprises (SMEs) generate about a half of the GDP and jobs.
Regional wise special Economic policy needs
Regionaldisparity high in Russia,needs regional wise special Economic policies.
Russia has huge potential, i think Economic diversification could boost Russia's Economy..... Russia could reach USD 5 trillion in next 6-7 years.
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References
◆energi.media >Electric vehicles will kill global oil industry by 2030, says Stanford economist.
◆Oil Prices And The Fall Of The Soviet Union www.businessinsider.com 11-Aug-2011.
◆Russia is in trouble as energy prices fall |Financial Times>09-Aug-2015 ·
