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    Russian Economy General News: #9

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    Neutrality

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    Re: Russian Economy General News: #9

    Post  Neutrality on Tue Nov 13, 2018 7:40 pm

    Is it true that these Western statistical bureaus don't include Crimea when they make these forecasts? If that's true, do they realize that it only makes their own research unreliable to be used by other interested parties? Crimea has (almost) the size of Belgium; more inhabitants than Slovenia and WAY more than Latvia. (just a little less than Armenia).

    And a decade later they ask themselves why their prognoses about Russia have been wrong? Rolling Eyes
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    Kimppis

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    Re: Russian Economy General News: #9

    Post  Kimppis on Tue Nov 13, 2018 8:17 pm

    GunshipDemocracy wrote:BTW Recently Fitch downgraded Russian GDP growth in 2021 by almost 50%(3-> 1.7%) because "it is unlikely Prussian government finds resources to fund all planned projects" affraid affraid affraid

    They were talking about the Prussian government? So they were talking about 1821? Cool Seriously though, did they actually forecast a 3% growth at one point? What's the source for that?

    What are "all" of these "projects" anyway? Why won't Russia have enough funding? And if they actually predicted 3% earlier, why this sudden pessimism all of a sudden? What changed? Fitch seems to suggest that Russia won't actually have almost any funding for those projects at all. I mean, that downgrade is huge.

    In any case, I'm using the official figures, which have obviously been more reliable. At first, the Western "experts" thought that the Russian economy would more or less "collapse" after 2014 and that it would run out of "money" soon after. When that didn't happen, they simply changed their forecasts to predict stagnation... until the end of time. So their track record is not impressive.

    But really, I'm surprised if they ever had such an optimistic forecast in the first place, and I'd like to see a source. How is the discussion about this on the Russian language media? Are they optimistic? Should there roughly enough funding? The topic is very complicated.

    Neutrality wrote:Is it true that these Western statistical bureaus don't include Crimea when they make these forecasts? If that's true, do they realize that it only makes their own research unreliable to be used by other interested parties? Crimea has (almost) the size of Belgium; more inhabitants than Slovenia and WAY more than Latvia. (just a little less than Armenia).

    And a decade later they ask themselves why their prognoses about Russia have been wrong? Rolling Eyes

    Mostly yes, I think. "Something evil Putler something something annexation something invasion something fake referedum something international law something rules-based international order." That's the summary. Rolling Eyes

    For example, look at the English Wiki's Russia article. IIRC, Crimea is really not properly included in the population total, only separately. (Atleast the map is decent, and it clearly separates Crimea from Ukraine as well.)

    However, to be fair, it's not like that makes a huge difference, especially economically. Crimea is still less than 2% of Russia's population, and its economic output is probably even smaller, as it's still poorer than the Russian average, AFAIK.
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    miketheterrible

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    Re: Russian Economy General News: #9

    Post  miketheterrible on Tue Nov 13, 2018 8:50 pm

    Well, since Russia is running over a 1.8T Ruble budget surplus currently, it just means there is plenty of available money.

    Then there is of course Russia's reserves which currently sit at $450B. Then there is of course the National Welfare Fund which sits at roughly $80B currently, etc etc etc.
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    dino00

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    Re: Russian Economy General News: #9

    Post  dino00 on Tue Nov 13, 2018 9:30 pm

    Russian Budget Surplus In Jan.-Oct. 2018 Estimated At $44Bln - Finance Ministry


    The Russian Finance Ministry said Tuesday it estimates the federal budget surplus in January-October of 2018 at 3.022 trillion rubles ($44.1 billion at current exchange rate), or 3.6 percent of GDP

    According to a statement by the ministry, budget revenues for the 10 months amounted to 15.804 trillion rubles, while expenditures totaled 12.782 trillion rubles.

    https://www.urdupoint.com/en/business/russian-budget-surplus-in-jan-oct-2018-esti-480127.html
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    Neutrality

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    Re: Russian Economy General News: #9

    Post  Neutrality on Tue Nov 13, 2018 11:24 pm

    A little correction on Rosatom: their order book is 300 billion dollars. They are building 34 reactors in 12 countries.
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    GarryB

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    Re: Russian Economy General News: #9

    Post  GarryB on Wed Nov 14, 2018 7:05 am

    Saudi Arabia is dropping oil production next month which should push the price up again... with all these sanctions and likely impeachment attempts every other week on Trump now the order of the day the price of oil should climb a bit now too.

    High oil prices are not good for any economy, they push up the price of fuel and increase transport costs... so what Russia should do is offer to sell military products to Iran for oil, and use that oil to process in Russia and basically force down the price of fuel domestically for Russian users, while selling some military kit they would not normally be selling... they could even sell production licences for certain items that Iran might find useful.

    The result will be good for Russia and good for Iran... and who cares about how the US or the west feels about it...
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    George1

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    Re: Russian Economy General News: #9

    Post  George1 on Wed Nov 14, 2018 9:18 am

    The Central Bank of Russia bought over 92 tons of gold in the three months to the end of September breaking the Soviet peak of 2000 tons in gold reserves seen in 1941, according to a new report by the World Gold Council (WGC)
    -----------------------------------------------
    Russia is not only the largest official buyer of gold, it is also a leading producer

    Production has almost doubled since 1995 and today, Russia ranks third on the list of global producers, behind China and Australia. In the past ten years alone, the country has mined more than 2,000 tonnes of gold, with production of more than 300 tonnes expected this year, rising to 400 tonnes by 2030, according to Sergey Kashuba, Chairman of the Union of Gold Producers of Russia.

    https://www.rt.com/business/442934-russia-central-bank-record-gold/?fbclid=IwAR3m1boSPB3lQZK_bpekkwuDndjh5i0Ii8y_Imh4ZXi0be332UdDbk3V2jg

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    Hole

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    Re: Russian Economy General News: #9

    Post  Hole on Wed Nov 14, 2018 10:13 am

    Russia and Iran already have a deal to "swap" oil. Russia is selling "iranian" oil. With the revenues Iran buys goods in Russia.
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    Neutrality

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    Re: Russian Economy General News: #9

    Post  Neutrality on Wed Nov 14, 2018 1:04 pm

    Pushing down oil prices this hard is going to harm the American industry more than the OPEC countries. It will be the same scenario as in 2015-2016 when shale producers massively bankrupted and workers were laid off. Nobody remembers that?

    The oil rig count in shale producing states went down hard from over 1800 in 2014 to below 400 in January 2017. The data can be found here: https://tradingeconomics.com/united-states/crude-oil-rigs

    Both sides will have to cooperate to establish prices that suit everyone. My forecast is that the US will sooner or later coopoerate with OPEC+ countries. If they don't, we'll see a rinse and repeat scenario of what I described above.
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    Nibiru

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    Re: Russian Economy General News: #9

    Post  Nibiru on Wed Nov 14, 2018 5:25 pm


    what Russia should do is offer to sell military products to Iran for oil, and use that oil to process in Russia and basically force down the price of fuel domestically for Russian users, while selling some military kit they would not normally be selling... they could even sell production licences for certain items that Iran might find useful.

    would be nice to see an oil and gas pipeline from Iran to Russia russia



    Kremlin sees no reasons for concern due to growth of capital outflow from Russia

    SINGAPORE, November 14. /TASS/. Russian presidential spokesman Dmitry Peskov sees no reason for concerns due to growth of capital outflow from Russia. According to him, Russia’s financial and economic situation is stable.

    "The process is quite volatile - both outflow and inflow. Capital lives only where there is freedom of movement for this capital. In this case, it is important not to forget that Russia is a country where it is difficult to dispute the fact of financial and economic stability," Peskov said.
    "At the same time, there are absolutely free conditions for the movement of capital in the country. This guarantees that the outflow will be replaced by an inflow," he added.

    Earlier, the Central Bank announced that the net export of capital from Russia by the private sector, according to a preliminary estimate by the regulator, increased 3-fold in January-October 2018 year-on-year and reached $42.2 bln.

    http://tass.com/economy/1030790
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    PapaDragon

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    Re: Russian Economy General News: #9

    Post  PapaDragon on Wed Nov 14, 2018 6:09 pm


    Russia Is Pressuring Western Commodity Traders to Pay for Russian Oil in Euros

    https://russia-insider.com/en/russia-pressuring-western-commodity-traders-pay-russian-oil-euros/ri25366

    https://oilprice.com/Energy/Crude-Oil/The-Biggest-Threat-To-Dollar-Dominance.html

    ...Now, Russia’s biggest oil producers are renegotiating oil delivery contracts with commodity traders, and three of them, Rosneft, Gazprom Neft and Surgutneftegaz, have raised traders’ hackles by insisting they, the traders, commit to paying penalties beginning next year if U.S. sanctions disrupt sales and as a result the buyers fail to make payments. Also, there are discussions about using euros and other currencies instead of dollars to ensure payments are not disrupted....
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    GarryB

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    Re: Russian Economy General News: #9

    Post  GarryB on Thu Nov 15, 2018 5:44 am

    If the US puts sanctions on those traders for trading with Russia then they might not get the option to use US dollars anyway... it is really in the traders interests to change currency... they should be pleased they did not demand they buy in Rubles...
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    Hole

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    Re: Russian Economy General News: #9

    Post  Hole on Thu Nov 15, 2018 11:15 am

    Or Gold! Very Happy
    Plus some virgins, just for fun! Twisted Evil
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    GunshipDemocracy

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    Re: Russian Economy General News: #9

    Post  GunshipDemocracy on Thu Nov 15, 2018 10:28 pm

    Hole wrote:Or Gold! Very Happy
    Plus some virgins, just for fun! Twisted Evil

    meh gold is easier to find nowadays especially in Dubai lol1 lol1 lol1


    @Kimppis

    didnt find this here to be honest but they just downgraded outlook with very general words no facts numbers.
    https://www.fitchratings.com/site/pr/10034529

    in Ria.ru was prognosis 3% (CBR too)



    Gazprom Neft discovered a new field on the shelf of the Sea of ​​Okhotsk

    MOSCOW, Nov. 15 - RIA News. Gazprom Neft discovered a new field located on the Ayashsky site on the shelf of the Sea of ​​Okhotsk with geological reserves of over 137 million tons of oil equivalent, and gave it the name Triton, the oil company said in a press release.

    The field was discovered based on the results of drilling and testing of a prospecting and appraisal well of Gazpromneft-Sakhalin, a subsidiary of the company, at the Bautinskaya structure of the Ayashsky subsoil.

    "The new field will be called" Triton "- in honor of the ancient sea god, son of Neptune," the company said.

    "The development of the Neptun and Triton fields will open up significant prospects for the development of island infrastructure and, in general, for social and economic growth in the Sakhalin region. We are continuing to explore and develop all offshore license areas that are in our portfolio," the message states. words of Gazprom Neft Chairman of the Board Alexander Dyukov

    In 2017, the Neptune field was discovered, one of the largest on the Sakhalin shelf. Its reserves amounted to 415 million tons of oil in categories C1 + C2. The Ayashsky license area in the Sea of ​​Okhotsk is located in the northeastern part of the Sakhalin Island shelf, 55 kilometers from the coastline. The depth of the sea in the area - up to 90 meters. Earlier, 3D seismic survey in the volume of 2.15 thousand square kilometers was carried out at the Ayashsky license area.
    In late September, a source told RIA Novosti that Gazprom Neft was close to opening a new oil field in the Ayashsky area, whose reserves at that time were estimated at 80 million tons of oil equivalent.

    https://ria.ru/economy/20181115/1532891534.html


    Austin

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    Re: Russian Economy General News: #9

    Post  Austin on Sun Nov 18, 2018 9:52 am

    Here's One Measure That Shows Sanctions on Russia are Working

    https://www.bloomberg.com/news/articles/2018-11-16/here-s-one-measure-that-shows-sanctions-on-russia-are-working

    Austin

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    Re: Russian Economy General News: #9

    Post  Austin on Sun Nov 18, 2018 9:55 am

    Russia’s $11 Billion Natural Gas Pipeline Is Primed to Fuel Europe

    https://www.bloomberg.com/news/articles/2018-11-16/russia-s-11-billion-natural-gas-pipeline-is-primed-to-fuel-europe
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    miketheterrible

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    Re: Russian Economy General News: #9

    Post  miketheterrible on Sun Nov 18, 2018 10:49 am

    Austin wrote:Here's One Measure That Shows Sanctions on Russia are Working

    https://www.bloomberg.com/news/articles/2018-11-16/here-s-one-measure-that-shows-sanctions-on-russia-are-working

    Interesting, since production in Russia has grown significantly since sanctions. That has more to do with that Russia is no longer importing products from western nations.

    But its bloomberg. New York propaganda.
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    PapaDragon

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    Re: Russian Economy General News: #9

    Post  PapaDragon on Sun Nov 18, 2018 1:52 pm

    Austin wrote:Here's One Measure That Shows Sanctions on Russia are Working

    https://www.bloomberg.com/news/articles/2018-11-16/here-s-one-measure-that-shows-sanctions-on-russia-are-working

    This conclusion is predicted on the fact that current situation doesn't fit their old estimate​ of Russia's GDP (from before oil crash)

    So they conclude that sanctions are working instead of admitting that their estimate was wrong?

    Also about capital flight, in addition to paying off corporate debt everyone ignores the fact that Russia also generates capital unlike average country.
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    Hole

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    Re: Russian Economy General News: #9

    Post  Hole on Sun Nov 18, 2018 5:27 pm

    If all this money would stay in Russia the Inflation would be much higher.

    Also western companies are mostly registered in Ireland or the Netherlands or so. The money of Apple isn´t fleeing Amiland it was never there.
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    miketheterrible

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    Re: Russian Economy General News: #9

    Post  miketheterrible on Sun Nov 18, 2018 5:44 pm

    Most of that money mentioned "fleeing" is debt repayments. There is still $400B in private debt in Russia with a huge portion of that money coming from foreign entities.

    Good news is that RDIF (Russia Direct Investment Fund) is now starting to invest with no foreign entities investment. These are key projects that they are looking fully internally. One recently being a company producing all the needed materials to make insulin.
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    Kimppis

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    Re: Russian Economy General News: #9

    Post  Kimppis on Mon Nov 19, 2018 7:29 pm

    PapaDragon wrote:
    Austin wrote:Here's One Measure That Shows Sanctions on Russia are Working

    https://www.bloomberg.com/news/articles/2018-11-16/here-s-one-measure-that-shows-sanctions-on-russia-are-working

    This conclusion is predicted on the fact that current situation doesn't fit their old estimate​ of Russia's GDP (from before oil crash)

    So they conclude that sanctions are working instead of admitting that their estimate was wrong?

    Also about capital flight, in addition to paying off corporate debt everyone ignores the fact that Russia also generates capital unlike average country.

    Pretty much lol. I can't access the actual study, but those charts are not convincing. It also seems that it's been a rough consensus among "Russia watchers" that the recession was mostly due to oil prices. I mean, they absolutely collapsed. It was one-off, back in 2015 and 2016. Some experts predicted that the economy would totally collapse, or that it would at least decline by 5-6% percent in 2015 (in reality, it was something like 2.5%?). Also there was the "running out of money" trope a few years that I keep repeating. The point is: they are not immune to wishful thinking.  

    I don't know, I guess it’s possible that with Western (European) credit, there would have been no recession after the collapse in oil prices. That was their main purpose, right? But even that seems like a stretch. Regardless, the impact should certainly be minimal after 2020, Russia is still in the "austerity"/import substitution/building up reserves mode, which will last until 2021. You can also speculate whether that was mainly due to sanctions or not. In any case, it made Russia's economy more secure in the long run.

    Oh, and also the oil prices were very high in 2013, no sanctions, but Russia's economy still grew by only 1.3% that year. Didn't they start the whole inflation targeting and high interest rates policy around that time? I honestly don't know, because I didn't follow Russia's economy back then.

    EDIT: I just realized that the conclusion is misleading as well. The study covers five years, I think? From 2014 to 2018? And in their view sanctions have taken away 6% of the growth in total? So even if we assume that the assessment is accurate, that is still like only 1.2% per annum (and looking at the chart... around 2.5% in 2014 and at most 1% this year)... But as I said, even that's a huge if, which even they admit: "They admit that part of the 6 percent gap could be attributed to other shocks, such as the introduction of inflation targeting and a sell-off in emerging markets."
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    GarryB

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    Re: Russian Economy General News: #9

    Post  GarryB on Tue Nov 20, 2018 9:23 am

    I would actually say the sanctions are pretty much the entire western world cutting off Russia from their international system of doing things... it is not a complete cut... they can still use SWIFT etc, but the fact is that these sort of sanctions in the 1990s would have destroyed the Russian economy... now it is barely a blip on the radar and more importantly when they come out of it their growth will be independent of the west.


    Congratulations... you have successfully weaned a cub who can now sit at the big peoples table as an equal and do as they please without having to follow orders from Mother Washington.

    This is a good thing for Russia... and quite bad for the west.
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    GunshipDemocracy

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    Re: Russian Economy General News: #9

    Post  GunshipDemocracy on Tue Nov 20, 2018 3:24 pm

    GarryB wrote:
    Congratulations... you have successfully weaned a cub who can now sit at the big peoples table as an equal and do as they please without having to follow orders from Mother Washington.

    This is a good thing for Russia... and quite bad for the west.

    I disagree with blip of radar approach. Western sanctions wasn't able to destruct Russian economy but thsi doesnt yet mean it didnt impact Russian economic growth. Yes Russia will survive but the main objective here is to stay in world size economy and top tech.


    West isnt to me a unified "cube" , there is USA and its  vassals, henchmen and doggies. Now only moderate growth with proof that you can counter US and stay alive is "fermenting" ranks of US side.

    India already clearly has shown that they are not to be ignored. China is balancing but also. This is in terms of PPP ~ potential of west.  Still alternate economy is to be created.






    The State Duma adopted in the second reading bills on renaming and new functions of VEB

    Vnesheconombank will be renamed VEB.RF, a state development corporation

    https://tass.ru/ekonomika/5812779
    MOSCOW, November 20th. / Tass /. The State Duma adopted in the second reading a package of bills relating to changes in Vnesheconombank’s activities, as well as its renaming from the state corporation Bank for Development and Foreign Economic Affairs to the state development corporation VEB.RF. Documents initiated by the government of the Russian Federation.

    The draft laws envisage new functions of VEB for coordinating (based on government decisions) and organizing the activities of development institutions on ensuring the long-term socio-economic development of the Russian Federation, creating conditions for sustainable economic growth and eliminating infrastructure constraints, developing infrastructure and innovation, developing and supporting Russian industrial exports. products (goods, works, services), raising the standard of living of citizens, creating comfortable conditions for their living. VEB will coordinate the work of such institutions as the Russian Agency for Insurance of Export Credits and Investments JSC, the state specialized Russian Export-Import Bank (joint-stock company) and others.

    VEB will be able to use the approved capital mechanism, in which funds are provided as the need arises for investment resources. Preliminary talk is about the amount of up to 300 billion rubles of approved capital, explained earlier Deputy Finance Minister Andrei Ivanov.

    Vnesheconombank will participate in managing development institutions, form joint project workflows that ensure the integrated use of financial and non-financial project support tools, including state support measures, and ensure information interaction between development institutions and government authorities and prepare proposals for improving development institutions support measures. VEB will provide financial and guarantee support to development institutions, ensure the fulfillment by development institutions of their obligations, including obligations to pay insurance compensation or the sum insured.

    In addition, the bills provide for the transfer of 100% of the shares of the Russian Export Center (REC) to the ownership of the Russian Federation.
    “Underlining the updated goals and objectives of Vnesheconombank, it is proposed to change the name of the state corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank)” to “State Development Corporation VEB.RF.” The existing name - "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" - does not fully reflect the current challenges facing the national development institute, which should deal not only with lending, but also with complex support for projects, "the explanatory note says.

    State support
    It is established that VEB acts as a recipient of state support in the forms provided by law - the relevant amendments are made to the Budget Code. The government will, by its act, determine the size of the formed authorized capital of VEB.RF, as well as the size of the authorized capital of VEB.RF, which is subject to formation by the subsequent payment of additional property contributions of the Russian Federation (the approved amount of the authorized capital).

    The Budget Code will set a deadline for the placement of federal budget funds on deposits of the VEB.RF state development corporation - no more than five years.


    Amendments to the second reading
    About 60 amendments were made to the second reading of the draft laws, they touched upon a whole block of existing laws, in particular, the law on banks and banking. In particular, one of the amendments provides that experience in VEB in senior positions in structural units engaged in banking operations is equal to the experience of managing credit institutions.

    Guarantees of continuing labor activity to members of the board of directors of the Russian Export Center after the transfer of 100% of the shares of REC to state ownership are established. The grounds for making additional property contributions and the peculiarities of the powers of the government as the sole shareholder of the REC are also clarified.

    The Accounts Chamber and other state bodies will control not only VEB.RF, but also development institutions, which VEB.RF provides support, the source of financial support of which is the federal budget.


    Last edited by GunshipDemocracy on Tue Nov 20, 2018 11:54 pm; edited 1 time in total
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    miketheterrible

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    Re: Russian Economy General News: #9

    Post  miketheterrible on Tue Nov 20, 2018 4:57 pm

    VEB is one of the most important banks of Russia. While not as rich as sberbank, it holds a ridiculous amount of Russian government assets and loans to even the military.

    VEB is also growing as the largest loan bank for SME's (Small/Medium companies) and as well huge investor in development in every sector.

    As for western sanctions and Russia's growth:

    Let us not forget, that even 1% growth is still growth. Stagnation is 0% growth. Neither drop nor growth. In this case, 1% growth is very low. BUT, lets remember key facts here:
    1) Russia has to rely heavily on its internal economic activity.
    2) Most of its trade is really just export of Oil and Gas to third countries, while its internal consumption matters for nearly everything else. Oil and Gas only accounting for a small fraction (less than 20%) of Russia's total economy. So it goes to show how powerful internal consumption is.
    3) Most world economic growth is in false recordings - China - Growth in construction and property management which is either ghost city related or just realestate altogether. USA - Heavy debt accounts for economic growth - be it consumer debt or government loans. 3 - EU - trading among themselves and the odd nation (France or UK) obtaining money from their assets in foreign countries (many of Frances former colonies still pay a tax to France. Hence why France is scared of Russia intervening in Central African Republic for example). Russia's growth is being undermined by themselves. Official growth vs unofficial growth ends up being two different things. Accountants believe Russia's real GDP growth is much higher than what government states. Probably for good reason too.

    But in the end, Russia is going to go the route of self reliance and in this case, Autarky (small form of it really, with still exporting). Reason is that even though this equates to slow growth, its sustainable growth. Add to that, the higher the average Russian makes, the more they end up spending. The more they spend, the more they consume and more the money circulates in the economy. Inflation just adds to currency growth in circulation thus there is a perpetual growth. The additional funds for big time projects comes from the exports of goods. In this case, Russia really profits greatly from export of oil and gas hence why their budget surplus is in the billions of dollars. But believe it or not, Russia still imports various goods such as:
    1) Electronics - this is becoming huge for Russia hence why so many small companies are jumping to this. Even in small forms like dummy terminals or electrical panels and other sub systems, these are still in huge demand
    2) CNC Machines - this is also being built in house. Some being fully Russian and most being foreign companies opening up either manufacturing or assembly with potential manufacturing. while it isn't ideal to have foreign companies to have such access to the internal market, it at least helps offshoot the importing concept, creates jobs, and has potential to export to various markets.
    3) Petrol - This is a huge one. Russia consumes so much petrol that their domestic production doesn't meet the needs of the people. To make it worst, many of the companies actually export more petrol than use for domestic needs because they make much higher profits from it. In end, it forces Russian government to import Petrol. And it is a rather large gap too apparently. More so that many of the companies are being forced to hold petrol for domestic consumption needs and also being forced by government to reduce costs for average consumer since prices were skyrocketing there as well. So there is obviously a HUGE market for more petrol stations. Other is that due to Russia's huge natural gas production, they are really banking on CNG automobiles (hence why new Lada Vesta, Granta, Xray, etc have Hybrid models (CNG+Battery)).
    4) Automobiles - Russian's are gluttonous these years. They love foreign automobiles (Much like Chinese do). They rather have a Toyota, Honda or (god forbid) BMW. Well, now this is somewhat changing and many of these companies are moving further production with even more localization of parts (even more so than what Avtovaz does!) to Russia.
    5) What Russia initially imported (Tractors) now they export. But there is still import of John Deer and Holland brand Tractors. Dunno why tbh.
    6) Medicine/Food products. Funny enough, while Russia is the largest producer of vast amounts of food in the world, they still import brand name goods. This has to change. More companies need to step up and start building new brands for cheese, meats, etc. Medicine being another one. While this is a huge profiting market and its seeing mass growth in Russia, it still pales in comparison in terms of how much Russia imports. This is tens of billions of dollars given away to third countries just for something that can be done at home. This is changing, but not quick enough (but they (pharmaceutical) are making a killing in profits)

    There are others, but while things are really good and changing, its actually funny how much Russia still imports. This goes to show a growing economy when the growth of imports is increasing. This means that local consumption demands are increasing thus that makes it more money available in the hands of the people. But this also means Russian companies need to step up and take the spot over foreign entities.
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    Kimppis

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    Re: Russian Economy General News: #9

    Post  Kimppis on Tue Nov 20, 2018 6:18 pm

    GunshipDemocracy wrote:I disagree with blip of radar approach. Western sanctions wasn't able to destruct Russian economy but thsi doesnt yet mean it didnt impact Russian economic growth.

    The overall impact was certainly negative, especially back in 2015-16, but overall modest, so it seems to me that the aforementioned study exaggerates their impact (though, as it turns out, even its conclusions were actually not that dramatic).  

    Now only moderate growth with proof that you can counter US and stay alive is "fermenting" ranks of US side.

    This. That would and will be highly symbolic as well, just like Russia's Syria intervention.

    And Mike, 1% is stagnation. Slow growth (for Russia) is stagnation. Even the USSR kept growing until the very end of the 80s, but it was still stagnating and the country's living standards were in relative decline, roughly from the early to mid-70s onwards. Anything below 2.5% (roughly) for Russia is stagnation, because the most developed countries have growth rates of around 1.5-2.5%.

    Also, without an annual growth of around 3%, Russia's share of the global GDP (PPP) declines every year. However, to be fair that is more or less inevitable anyway in the long-term, because Russia's population growth is low and it's already quite developed, much more developed than the global average (the West's share is declining even faster, or at least it was before 2013).

    The growth should pick up from 2020-21 onwards. The Russia government has not been prioritizing short-term growth since 2013 anyway.

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    Re: Russian Economy General News: #9

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