Question

please explain the russian econmy and it impact in the U.S.A in 6-7 paragraphs

Answer 1

Russia's economy is $4.2 trillion as measured by its 2018 gross domestic product. That's using purchasing power parity which compensates for government manipulation of exchange rates. That allows you to make more accurate comparisons of the economies of two countries. Russia's economy was the seventh largest in the world. It grew by 1.7 percent according to estimates by the International Monetary Fund..

Russia has a mixed economy. It's come a long way since the 1991 breakup of the Soviet Union and its command economy.

Russia supplies 30 percent of Europe’s oil and 24 percent of its natural gas. It aggressively uses pipeline politics to get its way. Putin knows that the European Union hesitates to defend Ukraine because it can't afford to lose Russia's energy supply.

Soon after the World War II, the Soviet Union emerged as a global as a global superpower to rival the United States. But when the Soviet Union crumbled in the early 1990s and reemerged as Russia, it had to reinvent its economy. In the decades that followed.

Oil and gas make up 59% of Russia's exports, Russia is rife with oil, and its economy is heavily dependent on the resource.

Real GDP growth in Russia surpassed expectations in 2018, reaching 2.3 percent, mostly due to oneoff effects of energy construction. Forecasted growth of 1.2 percent in 2019 and 1.8 percent in 2020 and 2021 reflects a more modest outlook.

Russia’s macro-fiscal buffers remain strong, with fiscal surpluses across all tiers of government and low public-debt levels. When compared to advanced economies, Russia spends less on health and education. Rebalancing in favor of these categories could improve the overall efficiency of public spending. Short-term inflationary risks have abated, with the Bank of Russia signaling a return to a neutral policy rate. Lending activity is recovering, but the banking sector remains afflicted with high concentration and state dominance. Having eased slightly, the poverty rate remains in double digits with many households close to the poverty line and lacking formal employment. Informal employment is rising in the face of close-to-zero net job creation by medium-sized and large formal enterprises.

Key risks to medium-term growth include the expansion of economic sanctions, renewed financial turmoil in EMDEs, a dramatic drop in oil prices, and souring of the global trade environment. The recent double-digit expansion in household credit may also pose a risk to financial stability in the case of a deterioration in the macroeconomic environment.

n 2006, Russia and the United States signed a landmark trade agreement that helped its membership process. The agreement reduced tariffs on cars. It also increased foreign ownership of financial businesses. To do that, it protected intellectual property rights. Russia relaxed its insistence on inspection of all meat products.

Russia became a member of the WTO on August 22, 2012. It allowed Russian businesses greater access to foreign markets. It provided Russia with the opportunity to expand beyond energy. Foreign companies such as Shell, Boeing, and Ford could now profit from joint ventures. The most critical was the exploration of Russia’s natural gas resources.

On December 4, 2012, President Obama approved Permanent Normal Trade Relations with Russia. That meant removing a Cold War-era trade restriction known as the Jackson-Vanik amendment. It linked U.S. trade benefits to the emigration policies of communist countries. Congress had already approved PNTR for Ukraine, which became a WTO member in 2008.