GGP of Russia for the past year Essay Example | Topics and Well Written Essays - 500 words

GGP of Russia for the past year - Essay Example This is especially the case in Russia. When GDP shrinks, that means a country’s economy is in serious trouble and a recession is looming. As the world continues to freefall in the current economic crisis, many country’s GDPs are shrinking. Russia, which for many years had been riding the recent increase in energy prices, has an economy and GDP which have been growing substantially over the last few years; however, this may not continue because of the way energy prices have seriously tumbled. The Gross Domestic Product of Russia is $1.29 trillion. This is one of the largest GDPs in the world, definitely in the top fifteen of all countries. It grew 5.8 per cent in 2008 which was one of the lowest rates of growth in several years and was largely due to the decrease in the price of oil and other resource of which Russia has a lot. Now the IMF has been predicting that the Russian economy will contract 0.7% in 2009 which is very bad for Russians who are hoping to see their country continue to grow and become more powerful.1 Part of the problem is that the Russian economy is not very diversified. Unlike more developed economies that have a good mix between resources, manufacturing, and services—Russia mostly exports gas and minerals and not much else. That means the economy is very dependent on international prices which it has little control over. A Russia continues to develop hopefully its economy will become more