Essay on Russia 's High Income Economy

1480 Words May 11th, 2016 null Page
Russia has a high-income economy. A high income economy, defined by the World Bank, is a country with a gross national income per capita above 12,735 US dollars. According the the World Bank, Russia’s GDP per capita is $23,875. Russia is ranked 6th in the world and have a GDP of $3.493 trillion as of 2016. If you were to divide up the GDP by sector would see that 4% is agriculture, 36.3% is industry, and 59.7% is services. Their inflation is at 12.9% while they have 13.4% of their population below poverty line. They have a labor force of 76.1 million and unemployment at 6%. There economy relies mostly on exporting crude oil and their military. They have been facing a financial crisis for the last decade.
Russia has a very large arms industry and is right behind the United States of America in arms export. Russian arms exports totaled $15.7 billion in 2013 which includes combat aircraft, air defense systems, ships, submarines and other military weapons according the World Bank. Their military is very solid and they have many regulations when it comes to their country.
In the past couple of years, the Russian Economy has been on the decline and continuing. They had a great recession in 2008-2009 because of political fears after the war with Georgia, also the plummeting price of crude oil which lost 70% of its value was a big factor in their recession.. World Bank says that because Russia had a strong short-term macroeconomic fundamentals that it made it more prepared than…

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