Russia’s bad Economy By: Gregg Selbert, and Colleen Murphy Pyrenees

Russia’s bad Economy

By: Gregg Selbert, and Colleen Murphy

Pyrenees

• Russia has no activity up north.• Russia has to export 368 billion dollars worth

of exports and has to spend 256 billion dollars on imports.

• Russia is wasting money on defending the rouble which will devalue anyway. They want to give the money directly to the people to compensate for the negative consequences of rouble depreciation.

• More factories have switched to light industry which means they won’t earn as much money.

• In 1998 Russia had an oil crash.

• Prime Minister, Vladimir Putin was wasting billions of dollars in public funds.

• There are large amounts of coal, oil, and gas but they can not get to it.

• The fall in oil prices from $147 this July to below $50 has blown a gapping hole in the government’s budget calculations.

• Russia will have a major crisis if the current trend continues with the government supporting the rouble.

Putin sought to assure hard-up Russians that their social benefits would not be affected, promising a $20bn assistance package.

Russian markets have lost 70% of their value.

Market

• Russia put up costs to save governments bonds.

• I am not exactly sure how much debt Russia is in right now but on July 17th, 2007 they were up to $8.887 trillion dollars in debt.

• Russia’s growth may go down from o%-2%.

• The inflation is expected to reach 13%.

Money!!!!

• Russia’s value of currency has gone down 20% since september.

That’s Russia’s bad economy!