By Sonal Srivastava
Economic growth in Russia has mainly sustained on the debt, excessive imports, and loans in the recent past. Consequences of this have led to an economic rebound, however, it is likely to remain meager due to uncertainties in the political arena.
Currently, Russia ranks as the eleventh largest economy in the world. A report recently published by World Bank cites that Russia is expected to witness a moderate economic growth, with a long-term forecast of 1.5 to 1.8 percent that is subject to change in tandem with the fluctuating oil prices.
Zooming through a Broader Lens
In the aftermath of Moscow’s invasion of Crimea, and Kremlin’s role in Ukraine’s conflict, Russia witnessed a declining purchase power and far-reaching sanctions by the Western countries. Slump in oil prices has also led to shrinking revenue generation, due to which the poverty rate of the country has inched back to 13.8 percent.
As the chemical sector has remained an indispensable contributor and catalyst for the nation’s economy and manufacturing industry, the Russian Ministry of Industry and Trade, and the Ministry of Energy are diverting their focus towards reviving the chemical sector for a sustainable economic growth. Hyperbolic claim in the era of hyped news has indicated that the dynamics in the economic progress of the country will continue to impact growth of the chemical industry significantly over the coming years.
Further, chemical products witness diverse applications for the production of soaps, pharmaceutical products, detergents, and petrochemical products across industries in the country. However, lack of resources has led the industry to face challenges pertaining to obsolete and outdated manufacturing facilities. Insufficient government funds have also squared the negative sentiments among investors. Irrespective of the above marginal growth of the manufacturing industry, the metal, automotive, aircraft and ship manufacturers are struggling within the confinements of limited resources, particularly chemical products.
Staggering growth of the oil and gas industry has further caged the prospects of progress for the chemical sector, compelling manufacturers to direct their investments towards imports. Bound to lack of financial resources, manufacturers in the chemical sector are becoming more sensitive to the inflated prices of raw materials resulting in limited production rate. Underproduction of quality chemical products has widened the unclogged passage for draining the economy.
Read more: Multiverse as a goldilocks economy
By Sonal Srivastava
Economic growth in Russia has mainly sustained on the debt, excessive imports, and loans in the recent past. Consequences of this have led to an economic rebound, however, it is likely to remain meager due to uncertainties in the political arena.
Currently, Russia ranks as the eleventh largest economy in the world. A report recently published by World Bank cites that Russia is expected to witness a moderate economic growth, with a long-term forecast of 1.5 to 1.8 percent that is subject to change in tandem with the fluctuating oil prices.
Zooming through a Broader Lens
In the aftermath of Moscow’s invasion of Crimea, and Kremlin’s role in Ukraine’s conflict, Russia witnessed a declining purchase power and far-reaching sanctions by the Western countries. Slump in oil prices has also led to shrinking revenue generation, due to which the poverty rate of the country has inched back to 13.8 percent.
As the chemical sector has remained an indispensable contributor and catalyst for the nation’s economy and manufacturing industry, the Russian Ministry of Industry and Trade, and the Ministry of Energy are diverting their focus towards reviving the chemical sector for a sustainable economic growth. Hyperbolic claim in the era of hyped news has indicated that the dynamics in the economic progress of the country will continue to impact growth of the chemical industry significantly over the coming years.
Further, chemical products witness diverse applications for the production of soaps, pharmaceutical products, detergents, and petrochemical products across industries in the country. However, lack of resources has led the industry to face challenges pertaining to obsolete and outdated manufacturing facilities. Insufficient government funds have also squared the negative sentiments among investors. Irrespective of the above marginal growth of the manufacturing industry, the metal, automotive, aircraft and ship manufacturers are struggling within the confinements of limited resources, particularly chemical products.
Staggering growth of the oil and gas industry has further caged the prospects of progress for the chemical sector, compelling manufacturers to direct their investments towards imports. Bound to lack of financial resources, manufacturers in the chemical sector are becoming more sensitive to the inflated prices of raw materials resulting in limited production rate. Underproduction of quality chemical products has widened the unclogged passage for draining the economy.
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