http://www.economist.com/news/briefing/21633816-more-decade-oil-income-and-consumer-spending-have-delivered-growth-vladimir-putins
Russia's economy is currently in a very sorry state and with oil prices, one of Russia's primary sources of income, falling universally their economy may go into a deep recession. The article takes care of stating that if handled correctly things will not be too bad, but puts a lot of emphasis on how tricky handling it may be, considering policies Russia has followed to date.
This shows how other countries economies can benefit off of a country who may be suffering. For instance the U.S. is doing pretty well and oil prices have dropped due to a recent finding then bringing down sales in other oil rich economies. Russia will get hit hard but will be able to recover.
ReplyDeleteAnother point to consider in regards to Russia's economic health is the sanctions they are receiving from the United States and European Union due to their involvement in Ukraine. These sanctions are certainly a detriment to the Russian economy and could cause further consequences for the country.
ReplyDeleteThe sanctions imposed by the US and the EU along with the fall of oil prices have been crippling the Russian economy. This has lead to a major drop in investment especailly FDI which was critical to keeping the country going. The economy of Russia will need five to ten years to fully recover where they were over a year ago because of the lasting effects.
ReplyDeleteLike Josh said, these effects will last for quit some time. The sanctions Russia received from the United States will cause further problems for the Russian’s economy.
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