Today Russia's GDP is small in comparison with China, USA.
Russia's GDP is ranked 9th world wide. and around 6th in PPP. Economy is dependent on commodities. Industry is mostly oriented towards the domestic market with foothold in CIS countries.
Japan's GDP is three times that of Russia
German GDP is twice the GDP of Russia
Japan, Germany and China are all resource poor countries.
Russia is a strong player but can only afford to do so regionally. With the rise of China and NATO's and EU push. Russia may find itself squeezed if it doesn't play its cards right.
Beatmaster
New Member
You seem to forget that Germany is NOT a resource low country and Japan is neither.
The industrial development within the 2 mentioned countries is multiple times higher then most parts of Russia.
Simply put Russia is investing heavy in modern industry, and even more in logistics to get their resources from point a to b.
This will cost money and ALOT of it, and it will cost a big chunk of time.
So where Germany and Japan have a economic edge over Russia thanks to their established industry, Russia on the other hand is picking up speed.
Let the GDP and PPP values not fool you ok?
Also China will in time overtake the US and EU combined in terms of economy as they are doing their parts on a increasing more technological industry and infrastructure, as many analysts state.
Then you got India, and Brazil (Thanks to its massive resources and increasing industry) who are rising fast and notably Nigeria (Thanks to their oil fields)
So does the question might be will Russia become a top 5 player? I am not sure, but fact is that the current list of big economic names is shaking and new names will pop up.
And in terms of Economic possibilities Russia has one of the best cards in the deck to rise sharply.
The nation is huge, and it has by far one of the biggest resource pool next to Canada to draw from.
And nowadays where US, EU and China/India become increasingly more hungry for natural resources and fossil fuels it is clearly that Russia will benefit from this in a massive way.
And you can see that clearly in their development efforts where they invest astronomical amounts of money into those industries.
And having the EU and China as one of their biggest clients for oil, and gas it becomes painfully clear that this will bring cash into the treasury for a long time to come.
Anyway GDP and PPP are just numbers, who do display a snap shot and a sneak peak in todays economic results of a nation, but what it does not take into account are the long term effects of current investments.
If you look at economic magazines and info sources then you will see that the amount of import and export in Russia over the years did rise sharply, but at the same time it did halt to a more durable level, however their resources and industry output tripled in the past 10 years so hence why they investing so hard in the infrastructure.
If those figures meet each other on paper then Russia's GDP will sky rock.
Anyone on this forum can tell you that.
Also question needs to be asked if Russia wants to grow as fast as China? keep in mind China is regarded as a bubble while Russia's economy is much slower but more durable and has IMO more stamina.
So if Russia would bubble they might risk another collapse, and if i where Russia i would not go there.
So hence why their figures are rather small, compared to their real figures.
Just my few cents here.
1- Germany has some coal.. Japan.. pretty much nothingYou seem to forget that Germany is NOT a resource low country and Japan is neither.
The industrial development within the 2 mentioned countries is multiple times higher then most parts of Russia.
Simply put Russia is investing heavy in modern industry, and even more in logistics to get their resources from point a to b.
This will cost money and ALOT of it, and it will cost a big chunk of time.
So where Germany and Japan have a economic edge over Russia thanks to their established industry, Russia on the other hand is picking up speed.
Let the GDP and PPP values not fool you ok?
Also China will in time overtake the US and EU combined in terms of economy as they are doing their parts on a increasing more technological industry and infrastructure, as many analysts state.
Then you got India, and Brazil (Thanks to its massive resources and increasing industry) who are rising fast and notably Nigeria (Thanks to their oil fields)
So does the question might be will Russia become a top 5 player? I am not sure, but fact is that the current list of big economic names is shaking and new names will pop up.
And in terms of Economic possibilities Russia has one of the best cards in the deck to rise sharply.
The nation is huge, and it has by far one of the biggest resource pool next to Canada to draw from.
And nowadays where US, EU and China/India become increasingly more hungry for natural resources and fossil fuels it is clearly that Russia will benefit from this in a massive way.
And you can see that clearly in their development efforts where they invest astronomical amounts of money into those industries.
And having the EU and China as one of their biggest clients for oil, and gas it becomes painfully clear that this will bring cash into the treasury for a long time to come.
Anyway GDP and PPP are just numbers, who do display a snap shot and a sneak peak in todays economic results of a nation, but what it does not take into account are the long term effects of current investments.
If you look at economic magazines and info sources then you will see that the amount of import and export in Russia over the years did rise sharply, but at the same time it did halt to a more durable level, however their resources and industry output tripled in the past 10 years so hence why they investing so hard in the infrastructure.
If those figures meet each other on paper then Russia's GDP will sky rock.
Anyone on this forum can tell you that.
Also question needs to be asked if Russia wants to grow as fast as China? keep in mind China is regarded as a bubble while Russia's economy is much slower but more durable and has IMO more stamina.
So if Russia would bubble they might risk another collapse, and if i where Russia i would not go there.
So hence why their figures are rather small, compared to their real figures.
Just my few cents here.
2- Bubbling economy: Russia was hit by the global financial crisis much worse than China. China is an export based economy. They are making heavy shifts to drive the growth inwards.
3- If Russians manage their economy correctly of course their economy will explode but so far there are very shy movements.
4- Do you know it is cheaper to transport soja from Brazil to russia than to buy from within russia? China's infrastructure is much better than Russia's
5- I do not see any ladas driven in europe, middle east ... plenty of korean cars though. I am not aware of any cooling compressors from russia. no CNC machines from russia. No slaughterhouse from russia. No meat grinder from russia. No computer from russia. No cell phone from russia. No swimming goggles from russia. No sunglasses from russia. No international fashion brand from russia. No international ice cream company from russia etc. How do you expect russia to be a global power with the current trend?!
In summary if russia develops correctly. focuses on quality and enters the global market with consumer products, it will have a chance of becoming a major player.
Currently and for the forseable future 5-10 years russia will be a regional power with significant influence in (Eastern europe and CIS Asian states)
Beatmaster
New Member
I see what you say buddy but ones word: Logistics
Thats the bottleneck within the Russian economy at this point.
Russia Exports
Exports in Russia decreased to 44800 USD Million in November of 2012 from 46052 USD Million in October of 2012. Exports in Russia is reported by the Central Bank of Russia. Historically, from 1994 until 2012, Russia Exports averaged 18565.57 USD Million reaching an all time high of 51338 USD Million in December of 2011 and a record low of 4087 USD Million in January of 1994. Russia is the fifth largest economy in the world and is a leading exporter of oil and natural gas. In Russia, services are the biggest sector of the economy and account for 58 percent of GDP. Within services the most important segments are: wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods (17 percent of total GDP); public administration, health and education (12 percent); real estate (9 percent) and transport storage and communications (7 percent). Industry contributes 40 percent to total output. Mining (11 percent of GDP), manufacturing (13 percent) and construction (4 percent) are the most important industry segments. Agriculture accounts for the remaining 2 percent.
Just a figure which says it all.
Give them time and you see.
Now I don't think so but still it could be anonymous and mystery from all over the word..
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But you do see nuclear reactors, ships, airplanes, etc. being exported from Russia. Traditionally, and to this day, Russian consumer goods sector is weak, and largely non-competitive. But when it comes to providing products of heavy industry the story is quite different. For example significant parts of Boeing civilian aircraft are made in Russia. The same goes for Airbus. Russian agricultural combines Torum-740 and Torum-760 are quite popular, with some even exported to the US. And Russian KaMAZ and Ural family trucks see good export success too. And of course anyone who pays attention to politics should know that the US bought Russian combat/transport helos for the Iraqi and Afghan militaries in Russia.
Fun fact KaMAZ is 8th in world in diesel engine production. So yes, Russia doesn't have an international ice cream company, and can't make (or more importantly market) a decent pair of sunglasses to save their lives, but that doesn't mean that their economy isn't developing.
in the mid 1990s after the 1st chechnya war.Russia was on its knees so to speak,would breakup we were told.in those days Russia`s gdp was comparable to that of the Holland.even speculation of Chinese takeover of siberia seemed a good bet.then came the financial meltdown in 1998 and yet another war in Chechnya and it seemed like Russia was a deadman walking.but here we are 15years later Russia is still there.no matter what Russia cannot be wished away.all talk of demographics,corruption is of course valid but can be dealt with eg tackling rampant corruption will encourage immigration.the sheer size of the resources at Russia disposal means it will become even more important in future rather than less in light of rising consumption across the world.simply put,the world needs Russia not the other way around.so yes Russia is a big player and will remain a big player no matter how much you dislike it