Topics: Russia, Petroleum, European Union Pages: 3 (1156 words) Published: April 1, 2013
Russia is a victim of the 2nd rescission in the Eurozone.
The Eurozone consists of 17 nations. These nations are heavily hit by a disastrous recession for the second time. Germany and France are two nations who have been hit even more than the other countries. The mean reason for the cause of this recession was a decrease in demand for these countries products in other countries. Hence, the numbers of products these countries export are hastily dwindling. Since the countries imported more products than they exported they got into a deficit. The total output of the countries has also diminished. Recession is a period of declining real GDP. The effect of falling demand and higher intrest rates starts to bite. Real GDP growth is slow and may even start to fall, just like it is in the Eurozone. Incomes and consumer demand fall and profits are much reduced. Some firms will record losses and some go out of business. Recession has culprit lead to high cyclic unemployment rates in some of the 17 nations. Unemployment through my eyes is a waste of human resources. The costs of thus are significant: * Serious Unem may lead to social problems, suach as crime, which is a cost to society. * Umem reduces demand for goods and services by the reduced income of those looking for work or those workers who suffer form a reduced salary. * There will be a loss of income and lower living standards. * The longer the period of unemployment the more difficult it is to find work, as skills become increasingly out of date.

The economy of the 17 nations in the euro shrank by 0.6% in the fourth quarter, which was worse than forecast. It is the sharpest contraction since the beginning of 2009. It followed news that the economies of Germany, France and Italy had all shrunk by more than expected. Germany, the eurozone's biggest economy, was hit by a sharp decline in exports.

The Russian Federation is the world’s ninth largest economy. It has enjoyed sustained economic...
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