Russia Economic Analysis

Topics: Investment, Macroeconomics, Inflation Pages: 2 (660 words) Published: January 3, 2013
Economic factor:
Russia economic size and opening up to foreign investment:
Russia economy is 6th in purchasing power parity (PPP) and 9th in nominal value worldwide, which makes it one of the biggest economies in the world. Since 1990s. Russia has been slowly moving into a more globally market economy since the fall of Soviet Union, in which their economy is more central based, meaning they were more self reliant before and not friendly to foreign investment. Russia has been doing its best to open its domestic market for foreign investment and trades to link themselves with the global economy so as to achieve changing their economy to a market based and global economy. This indicates they are welcoming more global investment in the market of Russia as the economy is more friendly and welcoming of other countries investing in Russia. This is one of the reasons why we are choosing Russia as our country to invest in as we want to ensure that the investment is supported by the country we invest in to ensure stability and safely. In between 2008 to 2009, the first recession hit Russia economy after their rising economy growth for the last 10 years, however, the growth resume in 2009 to 2010. Despite being hit by recession, they are not seriously affected by the global financial crisis and their economic growth is estimate continuing to growing at 3-4% per annual. This ensures that the people in Russia and the country itself have stable economic and purchasing power, which makes it more attractive as a country to invest in. Inflation:

From the analysis from Federal state statistics service, we found that the inflation rate for Russia for 2012 is about 6.5% recorded in November 2012, which is a decrease since 2011. From the graph above, it can be seen that inflation rate for Russia is decreasing, which means consumer in Russia are able to afford more as their purchasing power is strong due to the decrease in inflation throughout 2011 to 2012.

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