The events of the past few weeks regarding the Russian invasion of Ukraine have certainly had an effect on the markets and the economy as a whole. While markets don’t normally react strongly to political or social unrest and events such as this, the implications for what this means to oil prices in an already inflationary environment has caused turmoil throughout the markets. So what impact does Russia have on the world stage as an economic power? Russia ranks 11th in terms of GDP (Gross Domestic Product) which is the value of all goods and services produced by a country. Russia’s total GDP is about $1.5 trillion vs. the U.S. of $21 trillion making the US’s GDP roughly 14x larger than Russia’s. Russia’s wealth per capita however ranks 92nd as the vast majority of Russia’s wealth in concentrated to a handful of very powerful people. To put Russia’s nominal GDP into perspective, it is actually smaller than NYC. This however, is a little misleading since things in Russia cost less than in NYC but you get the idea. Russia’s representation in the world’s stock markets represent less than 1%.
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