Essay about Bric Russia

847 Words May 1st, 2014 4 Pages
Tiffany M.
International Business
BRIC – Russia

Question 1
What are the current economic indicators for the assigned country that clearly demonstrate that this country is on a consistent growth path and that this will play an important role in the 21st century world economy?

The financial crisis of 2008, lead to a deep recession in Russia in 2009 due to a severe decline in oil prices. “The GDP fell by 7.8 percent and the number of unemployed increased from 4 million in the summer of 2008 to 7 million (or 9.3 percent) at the beginning of 2010. Between October and December 2008, production experienced its worst drop in the history of Russia, plummeting by a record 19 percent. The official inflation rate, which reached over 14
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Citigroup believes that Russia’s economic growth will outperform other “debt-stricken” European nations, branding it the “Potential Savior of Europe”. "The point is that Russia has growth while Europe is facing stagnation," said Kingsmill Bond, chief strategist at Citigroup in Moscow "A lot of the growth that European companies will generate will be from their Russian operations." (Bloomberg, 2012) According to Citigroup’s report, Russia has the highest level of estimated economic growth, along with the lowest levels of debt compared to other major European countries.

Russia’s growth potential isn’t just tied into the oil market; major strides are being made in the field of information technology. Three students from St. Petersburg State University of Information Technology, Mechanics & Optics beat out more than 100 teams from the world’s best universities at the Battle of the Brains programming competition held in Warsaw. This was the third win for the school in five years. “This is not only an astounding achievement but indicative of Russia's great potential on the global stage beyond natural resources. While China is a global leader in manufacturing, and India in the export of services, Russia's hi-tech skills are creating an opportunity for it to become an innovation powerhouse.” (Korniliev, 2012) Past Battle of the Brains winners from St.

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