Russia's Economic Transformation If these targets are met, Russia's economy will be the largest in Europe and the fifth largest in the world, trailing only the United States, China, Japan, and India. When looking at the Russian economy, the first thing to evaluate is the sustainability of present growth trends. Recent data show that the country's GDP grew by 4% in 2016, which is lower than in previous years but still high by global standards.
The main driver of growth has been government spending, which accounts for 55% of GDP, followed by exports (40%) and private consumption (5%). The IMF estimates that government spending will increase by another 5% this year, which would bring it to 60% of GDP. This level is higher than in most other countries but still reasonable given Russia's size.
Tax revenue as a percentage of GDP is low by international standards. Only Yemen with 26% of its GDP coming from taxes exceeds Russia. The main reason for this is the fact that almost half of all Russians live below the poverty line and pay little or no tax. A small minority pays a large share of the income tax but gets most of its money back when filing their taxes because they claim many expenses that reduce their taxable income.
Expansion has been driven by investment, which has increased by more than 15% annually over the past five years. This rate of growth is much faster than in most other countries but still reasonable considering Russia's infrastructure.
Russia has one of the world's greatest economies, fueled by its abundant natural resources. Oil and natural gas production are among the top sectors, with agriculture, forestry, fishing, and manufacturing also contributing to the economy. Russia has a strong military tradition and is highly regarded for its design products.
Russia has the highest rate of alcoholism in Europe and many other social problems such as drug abuse, prostitution, and violence. It also has some of the worst environmental conditions in the world. The country's average life expectancy is below 70 years old because of high rates of cancer and heart disease.
Yes, Russia is an important country in the world today. Its land area is 1,143,695 km2 (440,775 sq mi), making it larger than France or England. It is also the largest country in Europe. In terms of population, Russia is again the largest country in Europe, with 143 million people. It is only second to China with 1.34 billion people.
Learning Russian will make you feel more connected to another culture and be useful for business purposes. Also, Russia is an important country and knowing its history will help you understand why it is important today.
Russia embarks on the transition with both benefits and disadvantages. Despite being half the size of the old Soviet Union's economy, Russia's economy possesses strong assets. Many of the world's most valuable natural resources, particularly those necessary to maintain a modern industrialized economy, are abundant in Russia. For example, Russia has more than 30% of the world's oil reserves and nearly 20% of its natural gas reserves.
Russia shares a border with eight countries and occupies another large area that borders five others. This makes it one of the most geopolitically important countries in the world. However, Russia's location at the center of Europe and Asia means that it is vulnerable to influence from both sides.
Russia has a long history as a nation state, which makes it difficult to change the political structure. It also means that there is no real democracy; instead, there is a semi-presidential system where executive power is shared between the government and the office holder who is not directly elected by the people.
There are many challenges that Russia faces today. Its economy is heavily dependent on energy sales, which are subject to price fluctuations. In addition, the country's financial system is relatively unstable due to heavy borrowing practices by state-owned companies over the years. Finally, Russian politics are dominated by powerful interests who seek to benefit themselves at the expense of the public.