Russia GDP Growth Almost Halves in 2019 (1 Viewer)

[Rogue Valley]

Russia GDP Growth Almost Halves in 2019

Russian economy grew 1.3% in 2019, its lowest rate since 2016.

2/3/20
The pace of growth in the Russian economy fell by almost half last year, fresh economic data released Monday has shown. Russia’s GDP grew by 1.3% in 2019, the Russian state statistics agency, Rosstat said. That compares with an official expansion rate of 2.5% recorded in 2018, and is the weakest annual growth since Russia emerged from economic crisis in 2016. Rosstat said growth in the natural resources industries, including the production of gas and gas condensate — which jumped by more than 10% — was the biggest contributor to growth over the year. Russia’s finance and insurance sector also expanded by more than 10%, news agency Interfax reported. The 1.3% expansion in 2019 was in line with the most recent forecast from the Economy Ministry, which is predicting growth of 1.9% this year. The figures are a preliminary reading and similar statistics have been significantly adjusted in recent years. President Putin has repeatedly said he wants Russia to grow “faster than the global average,” to ensure Russia’s share of the global economy is not shrinking. However, Russia has not hit that level in any of the last seven years, and even the most optimistic predictions for the Russian economy still predict that headline GDP growth will fall below the expected 3% growth of the global economy.

Russia is a gas-station kleptocracy run by an elite autocrat class and oligarchs. Remember, Russia is the largest country in the world, covering 11 time zones with abundant natural resources.

It is now ranked 13th by GDP, having been overtaken by South Korea. Russia would rank 4th in the United States behind California, Texas and New York, with Florida inching closer.