SWOT of Russia
SWOT Analysis of Russia Strengths ➢ Russia is a strong nation with much potential to grow. It ended 2008 with its tenth straight year of growth, averaging 7% annually since the financial crisis of 1998. ➢ Energy and raw materials dominate Russian exports. This can also be a weakness if these industries are not doing well. ➢ Over the last six years, both fixed capital investment growth and personal income growth have averaged about 10%. ➢ Poverty has steadily declined and the middle class has continued to expand over the past decade. ➢ Russia has also improved its international financial position by running surpluses since 2000. ➢ The government saved these surpluses in two sovereign wealth funds, together valued at over $200 billion: a reserve fund to support budgetary expenditures in case of a fall in the price of oil and a national welfare fund to help fund pensions and infrastructure development. ➢ Oil export earnings had allowed Russia to increase its foreign reserves to the world's third largest, from $12 billion in 1999 to almost $600 billion in August. ➢ Moscow initiated a more than $200 billion rescue plan designed to increase liquidity in the financial sector, to help firms refinance foreign debt, and to support the stock market.