In 2007 Russia became the 10th largest economy in the world

In 2007 Russia reached a nominal GDP of € 942 bn, making Russia the 10^th largest economy in the world. Drivers of this impressive dynamic were household consumption, which grew by 13.1 % and an investment boom, here especially notable the 21,1 % increase in corporate investment. The strong growth provides ample opportunities also for foreign companies. “In the current phase of development, Russia’s demand for goods from abroad, among them investment goods, is very high”, says Debora Revoltella, CEE Chief economist of UniCredit Group. According to a survey by the Statistical Agency (Rosstat) 61 % of interviewed enterprises bought imported equipment in 2007.

Prosperous outlook for Russian economy in 2008

The economists of UniCredit Group predict a GDP rise of 6.7 %, an increase of the real wages by 12 % and a rise in household demands by 10,2 % in 2008. The prospects for investment growth in 2008 are still very positive, despite a worsening international context and consequent repricing of risk resulting in higher financing costs. “We expect investment to increase by another 14 %, as with almost 60 % of equipment being more than ten years old, the need for equipment renewals is pressing” so Revoltella.

Presidential elections: political continuity granted

“International financial markets are likely to react positively to Mr. Medvedev’s victory, says Revoltella. “Moreover, the end of the uncertainty who becomes president should reduce the political risk and minimise struggles between Kremlin clans, and ensure the continuity of the economic policy.”

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