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Herald Economist

Russia’s Booming Economy Under President Putin

Before The World Cup

According to Russia Today. Before President Putin’s election, Russia had a $9,889 GDP per capita. The figure had tripled by 2018, and reached $27,900. The average monthly wage has grown almost 11-fold from $61 to $652. Unemployment has decreased from 13 percent to 5.2 percent. Pensions have grown over 1,000 percent from $20 to $221.

Having taken oath as the President of Russia for his fourth term at Grand Kremlin Palace on 07 May 2018, Vladimir Putin has promised to make this term his most fruitful one especially when it comes to economic activities. Even his previous terms, despite what the West Media might say, have proved to be special in terms of the economic boosts and Russia has prospered by leaps and bounds under the dynamic leadership of President Putin.

When talking about economic boosts, what better way to begin this topic than with talking about FIFA World Cup 2018 which is being held in Russia as we speak.

The Economic Benefits of FIFA World Cup 2018

Russia, and especially Putin, is in good luck having won their bid to organize the biggest football event in the world. With the grand event is nearing close, the economic boost it has brought with it is enormous. With economy gurus predicting an impact of $26 billion to $31 billion, the World Cup promises to be the highlight of Putin’s efforts in boosting Russia’s economy. While there the other reports suggesting that the World Cup’s impact will be short-lived, it remains to be seen how the numbers portray the situation at the end of the event.

Putin’s Efforts

Talking at St. Petersburg International Economic Forum (SPIEF), the Russian President had hinted at ensuring their continued efforts to be listed among the top 5 global economies while striving for sustainable growth.

“We set ourselves the task of gaining a foothold in this group of five, and I am certain that we will accomplish this. We are planning to do this through the expansion of domestic consumer and investment demand, among other measures,” said President Putin while talking to the head of foreign companies at the event.

Mr. Putin is also inclined on making Russian economy grow faster than the global numbers and that his authorities will do anything to achieve their goal. “This isn’t just a wish, but a basic condition for a breakthrough in resolving social, infrastructure, defense, and other tasks.”

Russia’s Gross Domestic Product (GDP) grew by 1.3% in the first quarter of 2018 from the same period last year which speaks for the well-directed economic activities in progress. By mid-2020, Putin aims to increase the per capita GDP by 1.6% which remains to be seen as it is quite a challenging ask, however, the previous performance suggests that the Russian heavyweight might just pull it off. With 2.5 and 2.2% year-on-year GDP growth in the second and third quarter last year, the numbers are crystal as a daylight portraying the efforts of the Russian President in terms of the economy. Russian economy continued its road to recovery in 2017 and the different factors going in the favor of country this year i.e. the FIFA World Cup and other initiatives by the Putin administration, the future of Russia’s economy looks bright. President Trump has also managed to keep the macro-fiscal impacts of elections to almost null as the annual inflation is recorded to be at an all-time low of 4%. In almost all the countries, the post-elections inflation is extremely hard to control however, Russian authorities have dealt with it extremely efficiently.

With 1.5% to 1.8% growth forecast predicted by Russia Economic Growth experts, the country is moving along in the right direction under the leadership of none other the Vladimir himself especially due to his increased focus on stabilizing and improving economy more than ever. More and more focus on digital transformation has allowed Russia to ramp up its economy to some extent however, there is still a need to implement policies to further strengthen the initiative.

 

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About the author

Sajawal Rehman

Sajawal Rehman

I am Sajawal Rehman and I am an Investigative Journalist who focuses on World News & Events. I believe in selfless, unbiased journalism and I do my best to dig deep and get to the bottom of the stories.
With a special interest in Financial news around the world, I love writing about World Economy and how it impacts the world in many different ways.
I have an Engineering degree in Geographical Information Systems. I have also been writing for numerous leading news outlets in my country for more than 5 years & I like to keep an eye on recent developments going on around the world. This is my first job as an Internationally oriented News Website which is an honor to be part of.

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