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Russia’s Slowing, Sinking Economy
By Ian Bremmer (original source LinkedIn Pulse)
“You wouldn’t know it from Vladimir Putin’s swagger, but the Russian economy is in dire straits. The country has $360 billion in cash reserves, but unless things change, that cash won’t last. These five stats explain why Russia’s economy is headed for trouble. This piece has been repurposed from my column in TIME.
1. Lack of Diversification
Small and medium-sized enterprises (SMEs) play critical roles in a well-balanced economy. That’s because SMEs spur innovation and new job growth, and they’re nimble enough to adapt to evolving consumer trends. The EU is stagnant, but its SMEs still contribute 40 percent of their respective countries’ GDP. In Russia, that number is closer to 15 percent.”
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