Macro-Economic Analysis: Russia

Macroeconomic Analysis : Russia

Word Count : 1 ,851

By : [Author]

SID :_____

[Subject]

[Professor]

[Date]

Macroeconomic Analysis : Russia

Macroeconomic Performance of Russia

Since the financial crisis in 1998 , Russia has been experiencing impressive economic growth due to the collaboration of monetary and fiscal policies that stabilized the performance of major economic indicators up to this day . Many economists regard the impressive performance of Russia as part increase of the volume of investment in the said country . On the other hand , some says that the notable growth

of Russia should be attributed to the increase of oil prices in the international market (Traveldocs .com 2008 : 1 . Despite of the various claims on what really was the foundation of Russia 's economic stability for the past nine years , it would be better to examine first what are the performances of some major economic indicators like GDP Growth Balance of Trade , Inflation Rate , Unemployment Rate and Interest Rate of the said country for the past four years

GDP Growth Rate

In 2004 , Russia experienced 7 .76 percent growth on their GDP from 1 .4 billion USD of 2003 to approximately 1 .5 billion USD of 2004 (Alcarastore .com 2008 : 1 . This increase in the GDP growth rate was triggered by the improvement of consumer demand from 2003 to 2004 . On the other hand , by the end of 2005 , Russia experienced sluggish improvement on the growth of GDP from 7 .76 to 6 .93 percent primarily due to the instability happened on the investment component of the economy caused by unclear limit and conditions non foreign investment , obsolete infrastructure as well as delayed economic reforms of the government But in general sense , the GDP of Russia still increased by around 150 million USD . By 2006 , Russia once again performed robust increase on their GDP growth rate from 6 .93 to 7 .8 percent as the economy starts to recover from the adverse effects of unstable investment climate caused by delayed fiscal policies . Last 2007 , the Russian GDP already reached its 2 billion USD level which caused their GDP growth rate to achieved 8 .3 percent growth level as the investors and consumption continues to improve in the domestic market of Russia

Trade Balance

Another major economic indicator of Russia 's economic performance would be the Trade Balance . For the past four years , the trade balance of Russia has been performing remarkable as this economic indicator continues to increase from 2004 to 2007 due to the strong consumer demand and fixed capital formation growth of the Russian economy . In 2004 , the trade balance of Russia reached around 85 .8 billion USD as the consequence of the increase of their non-oil exports by the end of 2003 The improvement of non-oil exports of Russia continued to positively influence the trade balance of the said country for the succeeding years like in 2005 , the trade balance increased by 23 billion USD while it increased by 22 billion in 2006 (The Federal State Statistics Office Service 2007 : 1 . Though...