Economics Report: Comparative Analysis of US, China, and Russia

This report provides a comparative macroeconomic analysis of the United States, China, and Russia. The analysis begins with an introduction outlining the research's objectives, which is to compare and contrast the economies of these three nations, particularly focusing on the economic standing of China and Russia as emerging economies in comparison to the developed US economy. The report utilizes secondary research methods, drawing data from various sources including academic journals, financial publications, and research databases. A comprehensive literature review summarizes key economic indicators such as GDP, purchasing power parity (PPP), technological advancement, and the influence of service sectors, population, poverty levels, and foreign direct investment (FDI) on each nation's economic performance. The body of the report delves into the strengths and weaknesses of each economy, highlighting trends in GDP growth, population dynamics, and the impact of global events like financial crises and international sanctions. The analysis also considers the role of government policies, such as import substitution in Russia, and the effects of outward FDI on economic development. The report concludes by summarizing the key findings, emphasizing the relative strengths of the US economy while acknowledging the significant growth and challenges faced by China and Russia.

Running Head: Macroeconomics
Macroeconomics
Compare and contrast the US economy to that of China and Russia

Economics 1
Introduction
The aim of paper is to form the research paper on the topic that is compare and contrast
the US economy to that of China and Russia. This macroeconomic topic has been selected for
the analysis as it provides the research of developing country from the developed nation. China
and Russia are part of BRICS that is emerging presently. The research has been conducted with
the help of the secondary research method that helps in gathering the accurate as well as the
reliable data. The data in the secondary research method are majorly collected with the help of
books, news, articles, and many others.

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Literature review
In the research, The Economist, 2012, said that economy of the United Stated is
extremely advanced diverse economy. Further, it is considered as world’s major economy in
terms of the nominal GDP as well as additional largest by purchasing power point. The economy
of the nation is majorly fuelled with the abundant natural resources that remains well developed
in terms of the productivity as well as the infrastructure. It is witnessed that despite the fact that
US deals with different tasks at national level with rapid landscape across the world. The
economy of US is still major across world with nominal GDP that predicts the exceed USD
majorly 21 trillion in the year 2019. On other hand, another Swanson & Bradsher, 2019 said
about the economy of China is also emerging as one of the threat for US in the near future. China
is considered in developing nations as it has the collective market economy of People’s republic
of China with this it has the world’s second largest economy by the nominal GDP with this it has
the world’s largest economy in terms of the purchasing power parity (PPP). Further, it has been
witnessed that Russia has an upper-middle income assorted as well as evolutional economy that
is present with the national ownership majorly in the parts of economy.
According to the Frankel, 2019, presently the economy of the US is stronger economy
that China as well as Russia. The reason behind it is that US economy is featured as highly
developed as well as the technologically advanced service sector that is equal to 80% of its
production. The economy of the US is majorly subjugated by the corporations that are the
service-oriented which include healthcare, financial services, retail and many others. However,
this has been found that comparing US from China, it stands on the second largest position in
world and it expressed the massive rise in span of the 35 years span. This is the reason due to

Economics 3
which the establishments are majorly leading a achieved slowdown due to which it is witnessed
gradually year after since 2010.
Contrasting this, another Evans, 2019 presented the views related to the comparison of
the economy of US with Russia. It has been witnessed that US has most of the technologically
powerful economy across the world. However, the Russia is an emerging economy which is
undergoing different sort of changes in their economy which affected their market-based system.
It has been found in the research that Russia is considered as one of the leading manufacturer of
oil as well as natural gas. It exports metals include steel and primary aluminium which
contributes in improving their GDP as well as the income of the people living in the area.
Although, the combination related to the declining oil prices, an international sanction as well as
the structural limitation has pushed the country majorly into the deep recession in the year 2015
that leads to the decline in the GDP by 2.8%. This decline was continuing in the year 2016 there
was decreasing GDP by 0.2% but improved in 2017. Considering the trend of the GDP, the
government of Russia has taken the step for the import substitution that has improved presently
with the efforts to diversify the economy away from the extracting industries. It has been found
that US market is consists of different service industries present in the market (World Bank,
2019). The private individual as well as the business firms forms most of the decisions as well as
the federal and statement government’s purchases the required products as well as the services
predominately present in the marketplace.
According to the Thomas, 2011, population of the country also contributes in the
economy because they are the one whose salary is considered when it comes to national income.
Thus, US will deal with the threats in near future because rising population of China contributes
in economy of country. United States ranks third in the world population and it has been found

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that it will hold the same position for the long. Further, U.S. Census Bureau put China in lead
with approx. of 1.34 billion residents that are majorly shadowed by India with approx. 1.19
billion. It has been found that US is considered as distant third with approx. 311.1 million
people. Comparing the US population data with Russian population it is declining with approx.
700 people in a single day or even more than 250,000 people on the annual basis as presented by
Eurasia Daily Monitor. In the end of the Soviet Union, some of the place has found the decline in
the population of more than 30%. The decline in the population of the Russia is registered
because of aging demographics, decline in the rates of immigration or any kind of failure by the
government to enforce the food as well as the health regulations. In the research, some of the
observers place the blame on the Western economic sanctions that has contributed in the poverty
as well as the economic uncertainty of the Russia. This decline in the population of Russia leads
to the problems for the economy of the country in the coming years.
Contradicting this, Frankel, 2019 stated that US is able to maintain the stability in their
currency after the global financial crisis that occurs in the year 2007-2008. From that time, US
improved their economy by increasing the trade from the different economies across the world.
Comparing it with the Russian economy it has been found that they suffered a major financial
crisis from the year 2014 to 2017 that shows the ruble’s worth to attain the cut in half. Later, last
year it has been found by the Central bank of Russia has blamed US sanction on the ruble hitting
a two-year low of 69.40 against the dollar. However, this has been found that Russia is ranked in
the top of 10 nations majorly in term of economic production. Apart from the high GDP
comparing it to the rest of world as the average months, which is approx. $670.
According to Edel Lemus & Abreu, 2015, poverty level is one of the major factors that
are considered while measuring the economy differences. The level of poverty in US has

Economics 5
improved from the year 12.4% in the early 2000 to 13.8% by the end of 2006 through the year
2010. On other hand, Russia witnessed the decreased level of poverty and the median household
income level that increase slowly. Thus, by the end of the 2007m the income that is based on the
expenditure-based poverty level declined to 18% (Edel Lemus & Abreu, 2015). In addition to
this, it has been found that China poverty is considered as one of the sensitive issues and due to
which the groups stated that Chinese people are starving. This reflects the major comparison
between the poverty among US from China and Russia that are considered as the developing
countries. It has been found in the research that there is presented a big lag in the salaries as well
as income of the people that leads to issue of the poverty in the developing countries and in US.
It has been found that BRICS enter into the Middle class.
(Source: Edel Lemus & Abreu, 2015)
The graph given above reflects that the millions of people in BRICS to enter the middle
class income bracket by the year 2020. It has been found that approx. 1000 or more than people

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will enter in the middle class by the year 2020 (Edel Lemus & Abreu, 2015). However, on the
other hand, this has been found that the Russia will not be able to register this number.
In the research, this has been found that Outward Foreign Direct Investment has
influenced the economy and brought the comparison between developed country and developing
countries. This majorly includes the comparison of US with the developing countries like China
as well as Russia.
(Source: Andreff, 2016)

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The image given above shows the statistics related to the outward FDI stock majorly
from the countries that include Brazil, Russia, India, as well as China from the year 1997 to
2013. The focus on the image is majorly on Russia as well as China for comparing it with the
US. Along with the outward, it also reflects comparative features related to the OFDU from the
BRICs (Andreff, 2016). This has been witnessed that Russia has registered the major the high
comparing it to other developing countries.
In the research, this has been found that flow of outflows of major countries as well as the
regions in the year 2015. The statistics related to FDI is explained with the help of the graph
below: -
(Source: HKTDC, 2016), (Source: Mishra, 2017)
The image reflects that US is able to register the highest FDI outflows with US $300
billion and the second position is taken by China with 146 (HKTDC, 2016). Further, there is an
image of the FDI Inflows also in which US is again able to score on top due to which the
economy of US is better comparing it with Russia and China. In the inflow, china is able to
capture the third position and Russia with number 10 position (Mishra, 2017). This reflects that

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Russia is far behind than US due to whom the government of the country needs to take the quick
steps to reduce the gap between US and Russia.

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Conclusion
In the end, this can be concluded that US economy is much stronger than the other
developing countries that include Russia and China. It has been found that economy of the
country is also affected by the population of the country that is presently high at China than US
as well as Russia. Further, poverty is one of the factors that are compared as it is considered as
major factor of comparison among the economy. Thus, the analysis reflects that UK is economy
is on peak across the world than the others. It has been found that China is trying to take the
leading economy position but the growth of OFDI is attained by US effectively because of the
improved system for MNC business operations.

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References
Andreff, W. (2016). Outward foreign direct investment from BRIC countries: Comparing
strategies of Brazilian, Russian, Indian and Chinese multinational companies. The
European Journal of Comparative Economics, 12(2), 79-131.
Edel Lemus, D. B. A., & Abreu, M. A. (2015). The persistent poverty level in the United States
vs. the BRICs emerging economies market. Journal of Asia Pacific Studies, 4(2), 169-
176.
Evans, P. (2019). 13 mind-blowing facts about Russia's economy. Retrieved from:
https://www.businessinsider.in/13-mind-blowing-facts-about-Russias-economy/
articleshow/68912690.cms
Frankel, J. (2019). The US economic recovery is far from being a world record. Retrieved from:
https://www.theguardian.com/business/2019/jun/14/the-us-economic-recovery-is-far-
from-being-a-world-record
HKTDC. (2016). China Takes Global Number Two Outward FDI Slot: Hong Kong Remains the
Preferred Service Platform. Retrieved from:
https://hkmb.hktdc.com/en/1X0A804W/hktdc-research/China-Takes-Global-Number-
Two-Outward-FDI-Slot-Hong-Kong-Remains-the-Preferred-Service-Platform
Mishra, A. R. (2017). India climbs to 9th position on FDI inflow list, US retains top spot.
Retrieved from: https://www.livemint.com/Politics/78UuHKYx50q7sZDq5tkHrK/India-
climbs-to-9th-position-on-FDI-inflow-list-US-retains.html

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Swanson, A. & Bradsher, K. (2019). U.S.-China Trade Standoff May Be Initial Skirmish in
Broader Economic War. Retrieved from:
https://www.nytimes.com/2019/05/11/world/asia/us-china-trade-war.html
The Economist. (2012). United States. Retrieved from:
https://www.economist.com/news/2012/11/21/united-states
Thomas, G.S. (2011). China, India and U.S. are top 3 in world population. Retrieved from:
https://www.bizjournals.com/bizjournals/on-numbers/scott-thomas/2011/07/china-india-
and-us-are-top-3-population.html
World Bank. (2019). Russia Economic Report. Retrieved from:
http://www.worldbank.org/en/country/russia/publication/rer