Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

Russia's Consumer Market Is Weathering the Storm, For Now
The Forbes ^ | 07 August, 2012 | Mark Adomanis

Posted on 08/07/2012 10:20:55 PM PDT by cunning_fish

One of the real surprises of the past several years is just how well Russia has fared in comparison with the European Union. Whereas, at the start of the financial crisis in 2008-09, Russia’s economy came screeching to a halt and suffered a dramatic fall in output, since 2010 Russia’s has been growing at a steady 4% clip and has fully recovered and surpassed its pre-crisis peak. Russia’s growth rate is decidedly lower than before the crisis but, all things considered, it’s respectable. Although their initial declines in output were much less severe than Russia’s almost 8% plunge, Eurozone economies have been essentially stagnant for the past two years, with several countries in outright recession and others flirting with double-dip territory. Considering how abysmally European institutions have performed to this point, it’s anyone’s guess as to when Western Europe will return to solid and sustainable economic growth or if it will turn into a continent-sized version of Japan that is in perpetual deflation and recession.

It’s bizarre and unexpected, but Russia’s response to the financial crisis has, by basically any standard you choose to adopt, been far superior to those of the EU countries. Considering Russia’s vulnerability to a decline in the price of oil, this could very well change in the near future, but, having grown up during a time when Russia was an abysmally governed basket case that was crippled by hyperinflation and outright defaulted on its debt, it’s still surprising to see it outperforming its Western neighbors.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Government; Politics; Society
KEYWORDS: europe; market; putin; russia

1 posted on 08/07/2012 10:21:05 PM PDT by cunning_fish
[ Post Reply | Private Reply | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson