Economy Of Russia

An Overview Of The Economy Of Russia

Russian Federation or Russia is the largest and the ninth most populous country in the world. The developing economy of the country is the 8th largest in the world and hasthe world’s 6th largest Purchasing Power Parity. Natural resources, education, especially medical education, trade; tourism, technology, space, aircraft, and automotive industries are the important sectors, where foreign exchange is earned by the country. The present order of the economy of Russia indicates a potential future, for employment of foreign nationals in diverse sectors. From being a centrally planned, Russia is gradually and prominently, turning to a consumer-oriented, and internationally integrated economy.

The State of Investments

Russia’s investment climate has undergone a massive transformation with an assortment of reforms. The process of privatization has been rapid and extensive. But Russia still continues to maintain over 1000 state owned companies, as the country’s strategic enterprises. Foreign investments in these strategic sectors are restricted. Foreign direct and indirect investments have been rising at a steady rate. A diverse range of foreign goods and services are sold in the domestic market afternumerousrestrictions were eliminated. Russia’s retained earnings, cash transactions, sales and political stability, have increased in leaps and bounds, with relaxation of restrictions on export and import. Foreign portfolio investment, in shares and securities, is on a rise. Incremental savings through significant banking reforms have been witnessed during the last and present decade.

Dominance of Industries

Russia records a steady flow of trade surpluses because of the huge export of commodities and services. Technological, scientific, telecommunication, tourism and educational developments have been the most recent trend in the country.Economy of Russia has shown major scientific developments in various sectors, like,automotive manufacturing, robotic manufacturing, aircraft, military equipments, patents, academic publishing and medical science.58 percentile of the Gross Domestic Product of the economy is consisted of services. The most dominant service sectors include healthcare, education, public administration, tourism, personal goods, real estate, retail trade, wholesale trade, communications, agriculture, nanotechnology, mining etc.

Wealth of Natural Resources

Russiahas a wealth of natural resources. No wonder, it is the world’s largest producer and exporter of gold, diamond and minerals. The country has numerous untapped oil and natural gas zones, which are expected to be accessible, with the global warming effect of melting of the Arctic ice. Russia has the world’s largest cover of forest, with almost one-fifth of the world’s forest. International trade in forest products and byproducts is becoming a gradual contributor to the economy of Russia. The majority of the hard currency of the country comes from oil and gas exports. The country has the largest petroleum and natural gas reserves in the world. It also is a significant leader in coal and oil reserves.

Facebook Like

Twitter Widget


© 2014-2017 Eklavya Overseas. All Rights Reserved