This PPT is made by using the various concepts that are covered under the macro economic concept. For example, Contribution of different sectors to the economy's GDP, National Income and its growth, Multipliers and its projected effect on the GDP, and many more. All these projections are backed by the 10 year data of the economy, collected from various sources.

3. 0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Agriculture (% of GDP) Manufacturing (% of GDP) Services (% of GDP)
• Share of Service sector has been more than 50% in the past decade
• Owing to its natural resources, Russia’s manufacturing sector has a share of approximately 10%
• Harsh weather and tough geographic conditions make cultivation of land arduous and restricted to a few areas, due to
which the share of agriculture is negligible

7. 1222.64
1524.91
2051.66
2210.25
2297.12
2059.98
1363.59
1282.72
1578.62
1657.55
1459.11
1524.91
1590.48
1649.33 1679.02 1690.77
1651.76 1657.19 1684.21
1722.19
83.8 100.0 129.0 134.0 136.8 121.8
82.6 77.4 93.7 96.2
0
500
1000
1500
2000
2500
1 2 3 4 5 6 7 8 9 10GDP(Nominal) GDP(Real) Deflator (%)
G
GDP (Real), GDP (Nominal) and GDP Deflator

8. -7.8
4.5
4.3
3.7
1.8
0.7
-2.3
0.33
1.63
2.25
-10
-8
-6
-4
-2
0
2
4
6
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
GDP Growth (%)
• In 2015, Russia’s economy went through the steepest contraction since 2009
• Due to the decreasing oil prices and increasing sanctions.
• The growth rate of the economy plunged to -2.3 and is still on its way to recovery.
• As per the 2018 data the growth rate is at 2.25.

9. C Y I ΔI G ΔY
922.16 1407.71 231.40 254.15
1070.69
1701.09 344.86
113.46
285.54
291.2369501
1384.92
2244.73 501.52
156.66
358.29
402.1256883
1520.63
2457.29 542.49
40.97
394.17
105.1646205
1641.93
2598.91 531.32
-11.17
425.66 -
28.67192607
1470.06
2305.35 465.99
-65.33
369.3 -
167.6935479
955.74
1502.00 305.29
-160.70
240.97 -
412.4958389
915.50
1451.94 301.88
-3.41
234.56
-8.75302309
1116.94
1782.63 380.32
78.44
285.37
201.3451998
1106.35
1771.13 376.77
-3.55
288.01 -
9.112384742
It can be concluded that if MPC = 0.6104,
Investment multiplier (m) equals 2.56687. It
implies that at m = 2.56687, an additional
investment will generate an additional income
equals to 2.56 times of ΔI, all other things
remaining the same. The value of the multiplier
is determined by the marginal propensity to
consume. The higher the marginal propensity to
consume, the higher is the value of the multiplier,
and vice versa.
Investment Multiplier: ΔY = {1/(1-b)} * ΔI
MPC = 0.6104
Investment Multiplier (m) = 2.56687
Now, ΔY = -9.111
In 3 years, ΔY = -4.532, if ΔI = -3.55

10. Year C Y I G
ΔG ΔY
2009
922.16
1407.71
231.40 254.15
2010 1070.69 1701.09
344.86 285.54
31.39 80.574
2011 1384.92 2244.73
501.52 358.29
72.75 186.74
2012 1520.63 2457.29
542.49 394.17
35.88 92.0993
2013 1641.93 2598.91
531.32 425.66
31.49 80.8307
2014 1470.06 2305.35
465.99 369.3
-56.36 -144.669
2015 955.74 1502.00
305.29 240.97
-128.33 -329.406
2016 915.50 1451.94
301.88 234.56
-6.41 -16.4536
2017 1116.94 1782.63
380.32 285.37
50.81 130.423
2018 1106.35 1771.13
376.77 288.01
2.64 6.77653
Government Multiplier:
∆Y = {1/(1-b)} * ∆G
MPC = 0.6104
Government Multiplier (m)
= 2.56687
Let us assume that the Government is spending its money on the goods and
services only, i.e., there is no transfer expenditure. Government spending is a
kind of Investment which increases the National Income of an economy.
It can be concluded that if MPC =0.6104, Government Multiplier (m) equals
2.56687. It implies that at m = 2.56687, an additional government
expenditure will generate an additional income equals to 2.57 times of ΔG, all
other things remaining the same. The value of the multiplier is determined by
the marginal propensity to consume. The higher the marginal propensity to
consume, the higher is the value of the multiplier, and vice versa.
Government is spending majorly on its Economic Development. The
expenditure involves employing workers (previously unemployed), paying
suppliers for raw material, spending on R&D. This would cause increase in the
salary/wages of people. These people will spend their income more on
consumption. This will lead to another injection into the economy, causing
higher real GDP.
Now, ΔY = 6.776
In 3 years, ΔY = 3.622, if ΔG = 2.64

11. C Y G X ΔX I M ΔM ΔY
922.16 1749.29 254.15 341.58 231.40 53.7665267
1070.69 2146.60 285.54 445.51 103.929593 344.86 53.1202122 -0.6463145 -0.320962685
1384.92 2818.72 358.29 573.99 128.478635 501.52 53.7556978 0.6354856 0.315585004
1520.63 3051.48 394.17 594.19 20.2013928 542.49 54.0941719 0.3384741 0.168087759
1641.93 3191.41 425.66 592.50 -1.6957856 531.32 55.9664572 1.8722853 0.929785293
1470.06 2863.63 369.30 558.28 -34.214344 465.99 55.5554314 -0.4110258 -0.204117259
955.74 1893.45 240.97 391.45 -166.83248 305.29 56.0543737 0.4989423 0.247776988
915.50 1782.08 234.56 330.14 -61.314115 301.88 56.7602171 0.7058434 0.350525004
1116.94 2193.90 285.37 411.26 81.1276168 380.32 56.264546 -0.4956711 -0.246152496
1106.35 2280.68 288.01 509.55 98.2867255 376.77 54.1242493 -2.1402967 -1.062880959
Export Multiplier: ΔY= {1/(1-b)} * ΔX
MPC = 0.4966
Export Multiplier (m) = 1.98651
Now, ΔY = 195.19
In 3 years, ΔY = 99.02, if ΔX = 98.286
Export Multiplier also results in inflow of income. An
additional export will generate an additional income equals to
1.98 times of ΔX. This implies that exporters are selling their
products to foreign countries and receiving more income. In
order to meet the foreign demand, they are engaging more
factors of production to produce more, raising the income of
the owners of factors of production. Hence, national income is
increasing by the value of the multiplier.

12. C Y G X I M ΔM ΔY
922.16 1749.29 254.15 341.58 231.40 53.7665267
1070.69 2146.60 285.54 445.51 344.86 53.1202122 -0.6463145 -0.320962685
1384.92 2818.72 358.29 573.99 501.52 53.7556978 0.6354856 0.315585004
1520.63 3051.48 394.17 594.19 542.49 54.0941719 0.3384741 0.168087759
1641.93 3191.41 425.66 592.50 531.32 55.9664572 1.8722853 0.929785293
1470.06 2863.63 369.30 558.28 465.99 55.5554314 -0.4110258 -0.204117259
955.74 1893.45 240.97 391.45 305.29 56.0543737 0.4989423 0.247776988
915.50 1782.08 234.56 330.14 301.88 56.7602171 0.7058434 0.350525004
1116.94 2193.90 285.37 411.26 380.32 56.264546 -0.4956711 -0.246152496
1106.35 2280.68 288.01 509.55 376.77 54.1242493 -2.1402967 -1.062880959
Import Multiplier: ΔY= {-1/(1-b+m)} * ΔM
MPC (b) = 0.496604493
MPM (m) = -0.000224588
Multiplier = 1.987396258
Now, ΔY = 4.197
In 3 years, ΔY = -1.397, if ΔM = -2.140
The value of Import multiplier is 1.98 and as per the
existing trends the country is expected to make imports
worth US$ 52 billion which translates to an increment of
US$ 102.96 billion.
Import multiplier results in outflow of income. An
additional import will decrease national income by -1.98
times of ΔM.

13. 13.08
-2.96
-13.1
0.06
3.86 3.53
7.56
9.13
4.94
-1.3
15.31
10.82
8.46
9.1
9.47
11.14
15.72
12.6
10.56
8.878.58
6.01
4.44
5.53 5.59
6.04
9.2
6.97
5.86
5.36
-15
-10
-5
0
5
10
15
20
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Interest Rates
Real(%) Lending(%) Deposit(%)
• The real interest rate is adjusted to remove the effects of inflation to reflect the real cost of funds to
the borrower and the real yield to the lender. The average real interest rate is 2.9%
• The deposit interest rate is paid by financial institutions to deposit account holders. The average
deposit interest rate is 11.46%
• The interest rate is the amount a lender charges for the use of assets expressed as a percentage of
the principal. The average lending interest rate is 6.35%

14. -2.96
-13.1
0.06 3.86 3.53 7.56 9.13 4.94 -1.3
400.8
600.61
615.83
566.31
513.78
364.38
325.43
410.62
500.35
344.86
501.52
542.49
531.32
465.99
305.29 301.88
380.32 376.77
-50
50
150
250
350
450
550
650
2010 2011 2012 2013 2014 2015 2016 2017 2018
Dynamics of Interest Rates, Savings and Investment
Interest Rate Savings Investment
• Russia has been following the policy of gradually decreasing interest rates with the goal of easing inflationary
pressures and lacklustre economic activity.
• As per 2018 the interest rate is at -1.3%.
• The real interest rates are low, only motivation to save is the lack of opportunities to invest due to instability in the
economy.
• The savings of the economy were US$ 500 billion during the year 2018.
• This is more than what was saved during the previous years, however, the Investments have stagnated.

15. 66.00
67.00
68.00
69.00
70.00
71.00
72.00
73.00
74.00
75.00
76.00
77.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Employed population(mn) Unemployed population(mn)
• The Service sector is the largest employer among the 3 sectors in Russia.
• The second largest employer is the Manufacturing sector, due to its labour intensive industries.
• The Average unemployment rate in Russia is about 4.58 percent.

16. 341.58
445.51
573.99
594.19 592.49
558.28
391.45
330.13
411.26
509.55
250.6
322.36
408.77
447.04
468.62
426.06
281.49
263.79
326.91
344.26
31.7 30.4 29.4 30.8 31.8 38.4
60.9 67.1 58.3 62.7
439.34
479.22
497.41
537.81
509.69
386.21
368.04 377.05
432.73
468.64
0
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014 2015 2016
Import, Exports, Exchange Return and Foriegn Reserves
EXPORT IMPORT Exhange Rate Foreign Reserves
• Russian main exports are energy (oil and petroleum products, gas, coal), rolled steel, ferrous and nonferrous metals
and minerals.
• The greater part of Russian exports belongs to oil and petroleum products. Other leading exports are natural gas,
timber, fertilizers, machinery and equipment, armaments.
• Russia imports machinery and equipment, vehicles, consumer goods, foodstuffs, chemical products, industrial
consumer goods.
• Major trading partners of Russia are Germany, Italy, China, Turkey, Poland, Switzerland, United Kingdom, United
States, and Finland.

17. 50.38
67.45
97.27
71.28
33.42
57.51
67.77
24.46
32.42
113.45
-12.46
-0.04 0.13
-5.218
-0.4
-42
-0.309 -0.764 -0.19 -1.1
37.92
67.41
97.40
66.06
33.02
15.51
67.46
23.70
32.23
112.35
-60.00
-40.00
-20.00
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Current Account Balances Capital Account Balances BoP
• Russia’s current account has been consistently reflecting a surplus
balance, owing to the exports of crude oil and natural gas. In 2018
Russia marked the highest surplus in current account at US$ 113
billion.
• A significant drop can be seen between 2012 and 2014, because the
falling prices of oil.
• However, this was offset to some extent by a drop-in import.
Concurrently, the geo-political tensions and sanctions further
decreased Russia’s balance of payment.
• 2014 was the worst year in terms of Balance of Payment within the
last decade. The total deficit amounted to US$ 146 billion.
Exports Quantity (% of total exports)
Crude Oil & Petroleum Products 58%
Iron and Steel 4%
Gems and Precious Metals 2.5%

18. Y E A R E X C H A N G E R A T E
2009 31.74035833
2010 30.36791534
2011 29.38234137
2012 30.83983135
2013 31.83714364
2014 38.37820714
2015 60.93765011
2016 67.05593333
2017 58.34280119
2018 62.66813333
0 20 40 60 80 100 120 140 160 180
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
93.58967594
100
108.4404649
113.9435398
121.640048
131.1525061
151.5262558
162.1973973
168.1716639
173.0121721
Consumer Price Index

19. GDP(%)
Unemployed population(%)
-7.8
8.309
4.5
7.369
4.3
6.536
3.7
5.436
1.8
5.458
0.7
5.16
-2.308
5.571
0.329
5.559
1.63
5.212
2.255
4.744
Okun's law pertains to how a rise in unemployment
affects gross domestic product (GDP), where a
percentage increase in unemployment causes a 2% fall
in GDP.
It is clearly evident from the given data that the
condition of 2 percentage points increase in GDP for
every 1 percentage points decrease in unemployment
rate does not satisfy in the case of Russia.

20. The Central Bank of Russia has
many duties: keeping up the
Ruble valuable and stable,
regulating financial institutions,
dealing with foreign reserves,
and setting interest rates.
Low oil costs and sanctions stunned
the Russian economy with the ruble
losing 46% of its worth against the
U.S. dollar in 2014.
Central Bank of Russia
progressively decreased interest
rates through the span of 2015,
beginning the year at 17.00% and
decreased to 11.00% by July.
They were kept unfaltering
for almost a year until June
2016 when they were sliced
by 50 basis points to 10.50%.
In settling on the choice to cut the rates,
the bank demonstrated that the analysts
were increasingly sure about the
advancement of inflation and noticed the
positive aftereffects of a drop-in inflation.
From that point forward there has been a
perceptible drop in inflation,
which made the bank to slice rates
in September 2016 from 10.50%
to 10.00%.
Considering its choice, the Bank stayed sure that
with a comparatively stringent monetary policy,
inflation would tumble to 4.5% in the 3rd quarter
of 2017 and abatement further toward its 4.0%
objective towards the end of 2017.

21. Since the 1998 debt crisis in
Russia, a comparatively weak
ruble and stringent fiscal
policy enabled Russia to run
budget surpluses from 2001
until the 2008 financial crisis
hit.
Since the financial crisis hit
the nation in 2009, the
economy started running
fiscal deficits.
In 2012, 2013 and 2014 Russia ran
deficits representing - 0.02%, -
0.7% and - 0.6% of GDP,
individually. The special case was
the year 2011, when the Russian
spending plan brought about a
0.8% of GDP excess.
Low oil costs and a
breakdown in demand in the
domestic market, and also in
imports, demolished fiscal
revenues in 2015. Further,
the effect of low oil prices
brought up issues about the
nation's long-term financial
prospects.
With the decrease in energy
costs and the Russian
government's reliance on
earnings from energy to
support its spending limit,
which represented around
52% of the Russian spending
plan, the government
thought of reconsidering its
fiscal strategy.
With the decrease in energy
costs and the Russian
government's reliance on
earnings from energy to
support its spending limit,
which represented around
52% of the Russian spending
plan, the government
thought of reconsidering its
fiscal strategy.
The Finance Ministry
declared toward the
beginning of September
2015 that it had chosen to
suspend the financial
principle—a law intended to
limit government spending.

22. Diversifying the economy is what
Russia needs to do to further
establish a more balanced
economy that is less vulnerable.
Focusing on its manufacturing and
service sectors can help achieve
more sustainable long-term
growth.
Despite the fact that GDP
composition reflects the growing
importance of services, it is oil
export that commands most of the
Russian economy since it directly
and indirectly affects almost
everything else.
The year 2014 was a bit hard, as it
confronted various issues
including smashing oil costs, rising
global pressure, and sanctions by
the western nations. Consequently,
Russia's GDP dropped to 0.6%
leading to devaluation of currency,
rising inflation, and crashing of the
stock exchange.
Russia's economy endured a
downturn during the period 2015
to 2017, finishing 2016 with a
0.2% decline in GDP.
As indicated by the World Bank,
Russia's GDP is expected to grow
by 1.8% in 2020, with more
modest growth forecasted for
2021.