Economics Report: Analysis of the Current State of Russian Economy

This economics report provides an analysis of the current state of the Russian economy. It examines the economic growth, highlighting a six-year high in 2018, driven by the construction and external sectors. The report details the growth rate in real GDP, the rise in consumer confidence, and the increased current account surplus. It also presents a forecast for 2019-2020, indicating robust growth influenced by oil prices and private consumption. The report discusses the potential impact of increased VAT, unemployment, and references relevant sources such as the World Bank and OECD.

Running head: ECONOMICS
Economics
Name of the Student
Name of the University
Course ID

1ECONOMICS
Table of Contents
Current state of Russian economy..............................................................................................2
References..................................................................................................................................3

2ECONOMICS
Current state of Russian economy
The growth estimates for Russian economy suggests that, economic growth in Russia
has significantly picked up in 2018. The growth rate reached to a six-year high level in the
last year. The considerably high economic growth has been contributed from a booming in
activities in the construction sector and expansion of external sector. Growth rate in real GDP
accounted to be 1.3 percent in the first half of 2018 and that of 1.9 percent in the second half
(worldbank.org, 2019). The increased consumer confidence has contributed to a growth in
retail sales. The current account surplus of Russia now has reached to a recorded high level.
The growth prospect of Russia for 2019-2020 has remained robust with a projected growth
rate of 1.8 percent. The higher than expected increases in oil prices can have a favorable
effect on economic growth. Economic growth is projected to remain stronger because of
growth in private consumption resulted from higher wage, employment and household credit.
Large infrastructural projects will stimulate both private and public investment. The weak
Rouble and increase in VAT will slightly increase inflationary pressure above the 4 percent
target (oecd.org., 2019). There is possibility of increase in unemployment because of increase
in demand for only part time employment following an increase in retirement age.

3ECONOMICS
References
oecd.org. (2019). Russian Federation - Economic forecast summary (November 2018) -
OECD. Retrieved from http://www.oecd.org/eco/outlook/russian-federation-
economic-forecast-summary.htm
worldbank.org. (2019). Russia Economic Report. Retrieved from
http://www.worldbank.org/en/country/russia/publication/rer