Skip to comments.Russia's Consumer Market Is Weathering the Storm, For Now
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, Russias economy came screeching to a halt and suffered a dramatic fall in output, since 2010 Russias has been growing at a steady 4% clip and has fully recovered and surpassed its pre-crisis peak. Russias growth rate is decidedly lower than before the crisis but, all things considered, its respectable. Although their initial declines in output were much less severe than Russias 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, its anyones 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.
Its bizarre and unexpected, but Russias response to the financial crisis has, by basically any standard you choose to adopt, been far superior to those of the EU countries. Considering Russias 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, its still surprising to see it outperforming its Western neighbors.
(Excerpt) Read more at forbes.com ...