- Following World War II, the Soviet Union emerged as a global superpower to rival the United States.
- But after the Soviet Union crumbled in the early 1990s, Russia had to reinvent its economy.
- Markets Insider compiled 13 surprising facts about Russia’s economy.
- Visit MarketsInsider.com for more stories.
Following World War II, the Soviet Union emerged 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, the communist nation has experienced plenty of economic struggles.
As Russia continues to try to reassert itself as a global power, it faces a fluctuating currency, declining population, and an economy that is in many ways dependent on oil and gas.
Here are 13 mind-blowing facts about Russia’s economy:
Russia loses 700 people every day
The Russian population is decreasing by approximately 700 people a day, or more than 250,000 people annually, according to the Eurasia Daily Monitor.
Some cities, like Murmansk, have experienced population declines of more than 30% since the end of the Soviet Union.
The decrease is due in part to aging demographics, falling immigration rates, and a failure by the government to enforce health and food regulations. Some observers place the blame on Western economic sanctions, which have contributed to Russian poverty and economic uncertainty.
The decline could continue to pose problems for Russia’s economy for years to come.
Russia has more than $460 billion in reserve funds
Russia has more than $460 billion in reserve, with a debt level of 29% of the gross domestic product and 15.9 months of import cover.
These basic macroeconomic statistics lead experts to believe Russia can withstand some global shocks, even if its economic growth remains at its low rate of approximately 1.5%.
Russia’s economic output plummeted 45% in the decade after the Soviet Union broke up.
Flickr / Janette Asche
From 1989 to 1998, Russian output dropped 45%, as the economic reforms following the Soviet collapse in 1991 took effect. By 2000, the nation’s GDP was between 30% and 50% of its pre-collapse output.
Several factors are attributed for the post-transition recessions, all which made it a chaotic time with poor economic policies.
- 21 simple social skills that will make you instantly more likable
- Here are the world’s 10 largest M&A deals this year
- Bank of America scoured hundreds of mutual funds with $1.5 trillion in assets and identified 7 neglected stocks poised to surge after crushing earnings