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Russia's Economy Is Booming

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Russia's Economy Is Booming

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Russian businesses are confident of the year ahead, so why aren't they investing more or taking bigger risks? Pixabay / MT

Moscow Times: Russia in 2020: Business Is Booming but the Future Is Unclear

While Russian businesses are feeling confident and growing their revenues, a lack of ambition and risk-taking could limit potential.

2019 was an impressive year in the Russian business world.

The Russian stock market was one of the best performing anywhere in the world — up more than 40% in dollar terms and setting new record highs in the process.

Corporate profits soared — rising 12% and on track to pass the landmark 15 trillion ruble mark ($340 billion).

“Russia is a profitable place to do business,” Alexis Rodzianko, President of the American Chamber of Commerce in Russia said. “The message I consistently hear is that Russia beats China and Europe on a profitability basis.”

As a share of GDP Russia’s corporate profits come in around 14% — more than twice the level in China and compared with 8.5% in the United States.

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Update: Russia’s Top 5 Earners Amass Extra $26.9Bln in 2019 – Forbes (Moscow Times)

WNU Editor: So much for the Western main stream media's narrative that the Russian economy is "flat" due to sanctions. It is not.


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