Russia’s economy is the third largest among the BRICS group. It ranks 8th worldwide. When the first BRICS summit was held in 2008, Russia was enjoying a more than 5 percent annual growth rate. That has since slowed considerably.
This year the World Bank is expecting just half-a-percent growth in Russia. Russia is considered a “high-income” country, by the World Bank. That means it has matured into a Developed economy by international standards.
A big reason for that is oil and gas. Russia is among the largest energy exporters in the world. Plus strong domestic consumption, easy credit and growing wages has kept the economy moving. But the country has had its fair share of challenges. Western sanctions have taken a bite out of growth.
The country’s former finance minister says they could shave 1.5 percent off of growth this year. The Rouble is one of the worst-performing emerging market currencies this year. Investors have been leaving in droves. $75 billion has left the country this year. Housing has also proved to be a problem in Russia.
In fact, in a recent poll of ordinary Russians, affordable housing was ranked as the second-biggest economic concern. Rising prices was number one.
Inflation in Russia is a long way from the 1000 per cent crisis times. But it is still hurting consumers. In June, it hit its highest level in three years. And Russia’s central bank says inflation will hit six per cent by the end of the year. CCTV’s Anya Ardayeva reports from Moscow.
CCTV’s Phillip Yin interviews Anders Aslund, enior fellow at the Peterson Institute, to talk about Russia’s agenda at the BRICS summit and its domestic economy.