20 Dec, 2019

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Russian Federation

The Russian Federation was the 11th largest economy in the world by nominal GDP in 2018. It has a GDP per capita of $11,289 USD and is classified as an upper-middle income country by the World Bank. It is a vast country, rich in natural resources; the World Bank ranks it sixth in terms of natural capital. It has the largest proven reserves of natural gas (19.8 percent) and the sixth largest reserves of oil (6.1 per cent and 106bn barrels). It is the third largest producer of oil (12 percent) and the second largest producer of natural gas after the US (17.3 percent). It is also a top exporter of steel and aluminium. It is a member of the G20. Services were the largest sector in the economy in 2018 (54 percent), followed by manufacturing (12.3 percent), and agriculture (3.14 percent). In 2017, its largest export sectors were minerals (51 percent), services (13.6 percent), metals (10.3 percent), and agriculture (8.3 percent). Its largest individual exports were crude oil (24 percent), refined oil (15 percent), and ICT services (6.4 percent). China is its biggest export partner at 10.5 percent, followed by the Netherlands (9.5 percent), Germany (7 percent), and Turkey (5 percent). Its leading goods imports were industrial machinery (19 percent), electrical machinery and equipment (11 percent), and vehicles (9.4 percent). Under communism, Russia was transformed into an industrial giant, through collectivisation and central planning. But by the 1970s, the economy was stagnating under the weight of defence spending and falling productivity. After the collapse of the Soviet Union, the country moved quickly to a market-based system with large-scale privatisations of SOEs. The speed of change sent the economy into shock with the economy contracting annually between 1991 and 1997. Inequality also increased rapidly. In 1998, the Asian Crisis and a fall in commodity prices led to the Rouble Crisis. By 2000 the economy had recovered and grew rapidly until the global financial crisis in 2008. Growth recovered in 2010 but falling commodity prices and sanctions over Ukraine led to a recession in 2014. The government has turned to import substitution in recent years to diversify the economy away from commodities. It is also increasing spending on education, health, and infrastructure to boost future growth. With the right policies Russia can take advantage of its natural resources and its highly educated workforce.

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Its population in 2018 was 143,964,709 [1]