Russia is developing the economy, based primarily on export income. However, it is not any kind of titanium of global exports. That's what he's holding.
In the article "Commercial War Mobilises Russian Economy" Trade war mobilizes Russian economy | Przemyśl Polska (myślpolska.info)) I described how fast GDP is growing, how well its trade balance looks, how wages are rising and unemployment is falling, and consumers are willing to spend. Let us look at exports, 1 of the sources of this success.
Russia's function in planet trade is not impressive. The West dominates here (US, EU, UK, Australia, Canada, Japan, South Korea). This rich part of the world, inhabited by 13% of the population (called the "golden billion") generates 51% of global trade in goods. Impressive, isn't it? Russia's trade is only 1.8 percent. So far behind. This can be realized, knowing that Russian trade amounted to $710 billion, while Polish – $747 billion. With a much smaller economy, we have more trade with the planet than Russia.
And that's what cutting her off protects her in this hard trade war, sanctions, bans, embargoes, and others. China would feel much more painful if it were to put force on them. Not to mention Europe, which would seriously degrade economically if it were cut off from planet markets.
This is the first crucial message, the second is export. And here it is not any power, its share in planet exports is 2.2 percent, and the value of exported goods in 2023 – $424 billion. But what it is, it is only 4 percent of the exports of the largest global player – the European Union (10 trillion dollars), only 1 tenth of Chinese exports (4 trillion USD), 1 seventh US (3 trillion USD) or yet 1 5th German (2 trillion USD).
Looking at the export per capita, the Russian is $45,000. It is not much compared to open (and dependent on global markets) economies in which the average Pole accounts for $11.5 1000 exports, Hungary for 18 thousand, and Czech Republic for 23 thousand. German exports for $20,000. Large economies have this rate much lower, by the American there are $9,000 exports, nipponese – 7 thousand, and Chinese – 2.8 thousand. So Russia is somewhere between China and Japan.
Russia is not as you can see besides a power in export (only 12th place in the world). So what's the point? Why is there so much talk about Russia's exports, and this is where America strikes the strongest? The specificity of the Russian contribution to planet trade consists in a crucial share in respective strategical goods needed by the world.
First, energy resources. Here Russia is simply a power, until late it was the world's largest exporter of oil and fuel, as well as natural gas. It ended with the trade war with the West. However, he remains an crucial player – exported Russian oil meets 8.4% of global needs, natural gas – 6.2%. Therefore, these are strategical sources of gross for the state. At advanced oil prices (many, much higher than the mining costs), their taxes provided almost half of the Russian budget's revenue.
But it is besides worth looking at another strategical goods, specified as food. In 2023, she was exported for $45 billion. The increase in agricultural production began in 2014, erstwhile Russia responded with counter-sanctions just in the food sphere to a sanctioned Western strike. The marketplace was freed from the force of global competition, and home entrepreneurs started filling it. Now they go out into the world.
Russia rapidly returned to the function of planet wheat trade tycoon and dominated the planet marketplace – in 2023/24 it took over 28% of planet trade, exporting 55 million tonnes of wheat (a year before that it was 47.5 million tonnes). Poland, the EU's agricultural power, exported almost 14 million tonnes.
However, Russia is not only natural materials, although these dominate. It besides supplies highly specialized goods to the world, specified as weapons, in which Russia was the second (after the US) planet exporter for many years, occupying 1 5th of the planet arms market. However, in fresh years (since 2020) it has been pushed off by the US, which has reduced sales by half.
He is besides an exporter of high-end technology. Here is the example of Rosatom, the world's largest exporter of atomic power blocks, which dominated (and this in 88 percent) the worldwide export of these energy sources. Rosatom last year earned US$14 billion abroad (this is 3.5% of Russia's exports), and 22 projects worth over $200 billion in.
However, you can export and have nothing of it, in Russia, too. About that soon...
Andrzej Szczęsniak
photo of wikipedia
Poland, No. 31-32 (28.07-4.08.2024)
