Russia’s GDP set to grow. Russia releases GDP figures on Wednesday 13th November. Consensus estimates are for growth of 1.6% with a forecast of 1.4%. The Russian economy grew by 0.9% at the previous reading.
Russia, the largest country on Earth in terms of landmass, is the 11th-largest economy in the world, with a nominal GDP of $1.63 trillion. Russia moves up the ladder to the sixth spot for rankings, with a $4.21 trillion GDP based on PPP. The IMF projected a growth of 1.7% and 1.5% during 2018 and 2019, respectively.
According to figures on countryeconomy.com, Russia’s GDP grew by 0.2% in the second quarter of 2019, compared to the previous quarter. In this second quarter, the GDP figure was $334,420 million.
Today (11th Nov. 2019), The Strategist rates Russia as the world’s fourth-largest generator of electricity behind China, the United States, and India and ahead of Japan and Germany. Russia’s steel production of 71.7 million tonnes makes it the world’s sixth-largest producer. Russia also excels in hydrodynamic methods such as drilling horizontal, sidetracking and hydraulic fractions. Various Russian state and company estimate state that with proper conditions in place, enhanced oil recovery could produce between 800,000 to 2m additional oil barrels a day by 2023.
The Atlantic Community, however, states that Russia’s economy faces three major threats.
1 – The climate policies in Europe and China where a stricter carbon tax could lessen the demand for hydrocarbon.
2 – A tightening of economic sanctions on Russia.
3 – Domestic political instability. The struggle for power and resources in the post-Putin era could severely increase political risks making investment less attractive and renewed capital flight more likely.
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Lilly Coates is a Eurasian Market News Contributor and researcher.