Go east?

Doing business in transition economies can be risky, but also profitable. Russia boasts a positive economic and political prognosis.

The Russian Market in Numbers I

• Political stability: expected continuing economic reforms in Putin's second term
• Strong GNP growth: 6.4% in 2005
• Reduction of foreign debt from $143 billion in 2000 to $110.5 billion in 2005
• Budget surplus and gold and foreign currency reserves of $150 billion
• Inflation rate of 11.5% and falling
• Growth in consumer spending of 10%
• Projected high growth in the Central European export market

Source:

• Russian Analysis 2005, East European Research Center at the University of Bremen

Russian Business in Numbers II

Continued economic reforms are expected in Putin's second term. Although most Russian companies were controversially privatized in the 1990's, many have improved corporate governance and work effectively.

GDP growth in 2005 was 6.4%. Russia has been among the fastest growing economies in the world for the last seven years.

Russian foreign debt continues to decline, from $143 billion in 2000 to $110,5 billion in 2005.

As a sign of the continually improving economy, the annual budget surplus and federal gold and foreign currency reserves have grown to $150 billion.

Inflation remains high at 11,5%, but continues to fall. The Russian economy has recovered from the financial crisis of August 1998. Consumer spending has since risen annually at 10%.

By 2050, the Russian economy should be among the largest in the world. Russia will become a central export market with high growth rates.

Source:

• Ost Ausschuss der deutschen Wirtschaft
• Russlandanalysen 2005 der Forschungsstelle Osteuropa der Uni Bremen
• Grävingholt, Jörn u.a. (2003): Geschäfte mit der Macht. Wirtschaftseliten als politische Akteure im Russland der Transformationsjahre 1992–2001. Bremen: Edition Temmen

Go east!

Doing business in transition economies is a challenge. Use the chance to expand into Russia.

We will help you succeed!