The Huge Economy of Russia

The statistics about the economy of Russia suggests that it is by far one of the dormant countries with a lot of potential. This country has huge potentials to be in the top five in terms of financial condition, but somehow it lags behind and is currently placed at the eleventh position in terms of nominal GDP.

When it comes to the purchasing power parity statistics, Russia economy is the eight largest in the world. The strange fact is that despite abundant natural resources and industrialization, this country has not been able to match the lofty standards set by the United States, China, Japan or Germany.

The Main Factor:

The main factor that affected the Russia economy badly was when it decided to transform the country into a free market system from being a planned economy. Experts feel that the financial condition of Russia would have been far better if they had their previous style of approaching the changing trends in economy. The main problem associated with the free market system was that it hindered Russia’s progress because of the difficulties and troubles in implementing the basic principles of economy and other fiscal reforms. The USSR was once a fierce competitor for the United States but it faded away into dark because of their poor strategies towards economical progress.

Current Position:

Russia economy is still one of the most prolific in the sense that they generate huge profits with its large exports of petroleum, crude oil, petroleum products, natural gas and wood. The current Gross Domestic Product of the economy of Russia is 1.254 trillion dollars with a negative growth rate of 8.5% because of the financial debacle in the year 2009. The GDP per capita income of Russia is only 8,873 dollars which is quite low when compared with countries of the same stature.