Eco 152 – Introduction To Macroeconomics Group Project Macroeconomic Study Of Selected Economy Russia.pdf

DUY TAN UNIVERSITY

SOUTHSTAR MANAGEMENT INSTITUTE

ECO 152 – INTRODUCTION TO MACROECONOMICS

2.7.MAJOR IMPORTING GOODS AND SERVICES OF RUSSIA 10

2.8.MAJOR IMPORTING GOODS AND SERVICES OF RUSSIA 11

3.SUMMARY AND CONCLUSION 12

3.1.SUMMARY AND CONCLUSION 12

3.2.ECONOMIC WELLBEING OF CITIZENS IN RUSSIA 12

Appendix-A Geographical location: Map of Russia 13

Appendix-B Roles and Responsibilities 13

Russia or the Russian Federation, is a country spanning Eastern Europe and Northern Asia It is the largest country in the world with an area of 17,098,246 km² and shares land boundaries with fourteen countries: Azerbaijan, Belarus, China, Estonia, Finland, Georgia, Kazakhstan, Latvia, Lithuania, Mongolia, North Korea, Norway, Poland and Ukraine It is the world's ninth-most populous country with 145.8 million people (2020) and Europe's most populous country Russia is a federal republic with 85 federal entities Russia borders the following countries (from northwest to southeast): Norway, Finland, Estonia, Latvia, Lithuania and Poland (both through Kaliningrad Oblast), Belarus, Ukraine, Georgia, Azerbaijan,

Kazakhstan, China, Mongolia and North Korea Currency Unit: ruble, symbol ₽

Exchange rate 1 RUB = 0.01USD Political system of the Russia, Russia is a democratic federal law-bound State with a republican form of Government.The Russian Federation consists of Republics, territories, regions, cities of federal importance, an autonomous region and autonomous areas - equal subjects of the Russian Federation.The state power in the Russian Federation shall be exercised by the President of the Russian Federation, the Federal Assembly The Government of the Russian Federation, and the courts of the Russian Federation.The economy of Russia has gradually transformed from a planned economy into a mixed market-oriented economy It has enormous natural resources, particularly oil and natural gas It is the world's 11th-largest economy by nominal GDP, and 6th-largest by purchasing power parity (PPP) Due to a volatile currency exchange rate, Russia's GDP as measured in dollars fluctuates sharply Russia was the last major economy to join the WTO.

- Russia is a large economy, ranking 11th in the world in terms of nominal GDP Vietnam is a smaller economy, ranking 51st in the world in terms of nominal GDP - Period 2018: First, we see the extremely large difference between Russia and

Vietnam By 2020, there will be steady growth in Vietnam, and at the same time, Russia's growth rate will slightly decrease after 2 years.

- Period 2022: Russia has an explosive growth rate of up to 2240 billion, besides, Vietnam is not far behind, maintaining its growth rate year by year.

- It can be seen that Russia's economy is larger in scale and has a higher standard of living than Vietnam's economy However, Vietnam's economy has a growth rate

- Period 2018-2020: Russia's GDP growth rate is unstable,with a sharp decrease in 2020 - Period 2021-2022: Russia's GDP growth rate decreased sharply, respectively -7.8% This deceleration was mainly due to the impact of Western sanctions after Russia invaded Ukraine The period 2021 is the period of strong boom, accounting for the highest rate.

- Period 2018-2020: Vietnam's GDP growth rate is quite stable, fluctuating around 7% Period 2021-2022: Vietnam's GDP growth rate continues to maintain an upward momentum, at 2.6% and 8% respectively The period 2022 is the period of strong boom, accounting for the highest rate.

- This growth is mainly due to Vietnam's good control of the COVID-19 pandemic and maintenance of economic recovery.

In general, Vietnam's GDP growth rate is significantly higher than Russia's GDP growth rate This shows that Vietnam's economy is more resilient and able to recover faster in a difficult global economic context.

- Period 2018-2020: Russia's GDP per capita fluctuates between 10,000-11,000 USD The period 2022 is the period of strong boom, accounting for the lowest rate - Period 2021- 2022: Russia's GDP per capita is respectively 12.593 USD and 15.345

USD The period 2022 is the period of strong boom, accounting for the highest rate.

VIETNAM:

- Vietnam's GDP per capita will grow continuously in the period 2018-2021 - Period 2018-2020: Vietnam's GDP per capita fluctuates between 3,200-3,800 USD - Period 2021-2022: Vietnam's GDP per capita is respectively 3.756 USD and 4.163

Russia has a more developed economic foundation than Vietnam, with higher infrastructure, technology and labor qualifications This also contributes to increasing Russia's GDP per capita In general, Vietnam's GDP per capita is tending to increase rapidly, but is still low compared to Russia's GDP per capita This shows that the living standard of Vietnamese people is still significantly lower than the living standard of Russian people.

- The unemployment rate in Russia has been generally stable from 2018 to 2022 The rate reached a high of 5.6% in 2020, due to the COVID-19 pandemic, but it has since declined The current unemployment rate of 3.90% is near a record low for Russia - The Russian economy has been growing steadily in recent years, and this has helped

to keep the unemployment rate low

- Overall, the current low unemployment rate in Russia is an amazing result However, it also poses some challenges for the Russian economy in the future.

- However, there are still some challenges that the Russian labor market faces One challenge is that the economy is still heavily reliant on oil and gas exports, which can make it vulnerable to fluctuations in global commodity prices Another challenge is that the Russian workforce is aging, which could lead to labor shortages in the future.

launched its military operation in Ukraine in February 2022.

- Period 2018-2021: The detection rate at this stage is quite stable, fluctuating between 2-5%

- Period 2022: Inflation rate in Russia during this period skyrocketed to the highest level in 2 decades of 17.8% in April 2022 The main cause of this spike is Western sanctions after Russia invaded Ukraine.The soaring inflation rate in Russia during this period was a major challenge for the Russian economy.

- High inflation has a number of negative consequences for the Russian economy, including:

+ Reducing people's purchasing power, reducing consumption and investment + Increasing production costs, making it difficult for businesses to operate + Increasing the government's public debt.

- To control inflation, the Russian government has taken a number of measures, including:

+Strengthening price controls on a number of essential goods + Providing financial support to small and medium-sized businesses + Increasing exports to earn foreign exchange.

RUSSIAN INFLATION RATE

In the period 2018-2022, Russia's trade balance tends to be positive, with the trade surplus gradually increasing over the years In 2022, Russia's trade balance reached its highest level in history, with a surplus of 332 billion USD.

Below is the statistical table of Russia's trade balance for the period 2018-2022:

ExportImportTrade balance

Unit: billion USDRUSSIAN TRADE BALANCE

- It can be seen that Russia's trade surplus has increased sharply in 2022, reaching a record high of 332.38 billion USD The main reason is the increase in oil and gas prices in the context of the Russia-Ukraine conflict Energy products account for 65% of total Russian exports in 2022.

- Russia's large trade surplus is also posing some challenges, such as increasing inflation and strengthening the Russian ruble A stronger ruble makes imported goods more expensive, causing difficulties for Russian consumers.

MAJOR EXPORTING GOODS AND SERVICES OF RUSSIA

Import of goods and services (% of GDP) in Russian

- The exports of goods and services in Russia has been generally unstable from 2018 to 2022 The rate reached a high of 30,79% in 2018, but it has since declined and reached the lowest of 25,53% in 2020 Until 2021,the rate continously increased up to 29,98%.

- Prices of goods and services on world markets have decreased in the period 2018-2020 This has reduced the value of Russian exports.

- There was a decline from 2018 to 2020, indicating a potential decrease in the contribution of exports to the country's GDP.

- However, in 2021, there was a notable increase, indicating a recovery or stronger export performance

- The slight decrease in 2022 suggests a potential stabilization or a minor setback in export contributions.

Import of goods and services (% of GDP) in Russian

- In general, Russia's main imported goods and services did not change much in the period 2018-2022.

- The percentage of GDP spent on importing goods and services in Russia has increased steadily over the past five years, from 20.79% in 2018 to 29.80% in 2022 This indicates that Russia is becoming increasingly reliant on imports to meet its needs.

- In 2020, there was a slight decrease in the percentage of GDP spent on imports, from 20.80% in 2019 to 20.44% in 2020 This may be due to a number of factors, such as the COVID-19 pandemic or the global economic downturn.

- In 2022, there was a significant increase in the percentage of GDP spent on imports,

MAJOR IMPORTING GOODS AND SERVICES OF RUSSIAPERCENTAGE

OF GDP

20182019202020212022

3.1.SUMMARY AND CONCLUSION

- Russia is the world's 11th-largest economy by nominal GDP, and 6th-largest by purchasing power parity (PPP).

- Russia's economy has experienced significant growth in recent decades - From 2018 to 2022:

+ Russia's economy is larger in scale and has a high standard of living + Russia's GDP growth rate is unstable.

+ The unemployment rate in Russia has been generally stable.

+ Russia's inflation rate showed an upward trend, especially after Russia launched its military operation in Ukraine in February 2022.

+ The exports of goods and services in Russia has been generally unstable + In general, Russia's main imported goods and services did not change much.

3.2.ECONOMIC WELLBEING OF CITIZENS IN RUSSIA

- Russian citizens' economic well-being has increased significantly since the 1990s Since 2000, real disposable income has increased by more than 80% Poverty has decreased from 29% in 2000 to 8% in 2020.

- However, the economic wellbeing of Russians is still relatively low by international standards The average Russian earns around $12,000 per year, which is well below the average income in developed countries Additionally, inequality in Russia is high, with the top 10% of earners accounting for over 40% of total income.

World Bank Open DataWikipedia

The World Integrated Trade Solution (WITS)

Appendix-A Geographical location: Map of Russia

Appendix-B Roles and Responsibilities

NAMEIDRoles and Responsibilities

Phan Thi Nhu Quynh 28204506065 Summary and Conclusion, PowerPoint File Hoang Thi Ly 28204544065 Country Background, Microsoft Word File Truong Thi Thu Ngan 28204602260 Provide summary and comments for each indicators

Provide summary compared to Vietnam data Nguyen Thi My Duyen 28204549724 Unemployment rate, Inflation rate ,Trade balance Le Thi Thao Ai 28204503841 Major exporting, importing goods and services Le Tran Khanh Vy 28204603626 Economic output (GDP), GDP growth, GDP per

capita