Atradius has launched its latest country report on Russia, which shows that increased liquidity and solvency in the country’s economy could place it as one of the world¹s top export markets, competing with the likes of China.
The report is the latest of Atradius’ series of country reports, which are issued by the company to make it easier for businesses to evaluate the risk of trading with a particular country at a glance, while still including more in-depth detail about its market.
In its new report, Atradius shows that the Russian economy has fully recovered from the 2009 recession and has grown steadily at a rate of around four percent a year on the back of a boom in consumption brought about by higher oil prices. In comparison, China’s GDP increased at its slowest pace in three years during the third quarter of 2012 due to weak global demand and a reduction in imports caused by the crisis in the Eurozone.
The growing domestic demand in Russia is also currently boosting growth, with a year-on-year increase in retail sales of eight percent in May 2012 and 7.2 percent in June 2012. In addition, its unemployment levels are low and it is running a significant trade surplus of 2012 US$ 110 billion for the first half of 2012 compared to US$99 billion in 2011.
With lower inflation and the currency depreciation in the first half of 2012, the real effective exchange rate has also depreciated, improving Russia¹s competitive position.
Alun Sweeney, of Atradius UK and Ireland, says Russia’s economy has been improving well in recent years, despite issues in the Eurozone, making it an increasingly attractive proposition for exporters particularly in light of China and India beginning to slow down:
“Provided companies are familiar with some of the legislative anomalies of Russian trade, such as competition laws, corporate approval laws, it represents an excellent trade opportunity for many businesses seeking a new export destination. But it’s imperative that businesses do their homework or partner with someone who can manage risks on their behalf.
“We are permanently alert to developments in markets across the globe, which allows us to offer expert analysis to businesses trading internationally. Through our regular country reports, such as this one for Russia, we are able to share this knowledge and better inform British businesses exporting decisions.”