That’s the characterization usually attributed to Se. Lindsey Graham.
Let’s drill down on that, starting with some GDP stats.
Russia’s GDP is only about $1.5 trillion.
============
Let’s out that number in perspective…
============
Russia’s “economy” is less than 1/10th of the U.S. economy (which is approaching $20 trillion).
More broadly, the Russian economy is about the 12th largest in the world … smaller than Italy and Canada … and just a little bigger than South Korea, Australia and Spain.
============
Taking another perspective on Russia’s $1.5 trillion…
Russia’s economy is smaller than California’s … and roughly equal to those of Texas and New York.
Hmmm.
=============
Finally, what about Russia’s dependence on oil & gas?
Using the narrowest direct measure, oil & gas production accounts for 15% to 20% of Russia’s GDP …. down from a high of 25% when oil prices were sky high.
More broadly about 60% of Russia’s national budget depends on duties and taxes attributable to the oil and gas sector directly or indirectly. Source
Bottom line: Sen. Graham is directionally corrt.
Russia’s economy is relative small and heavily dependent on oil & gas.
Which make’s you wonder why Germany — if it really views Russia as a significant geo-political threat — is propping up the Russian economy with its oil and gas purchases.
Maybe President Trump has a point!
============
Follow on Twitter @KenHoma
#HomaFiles
July 19, 2018 at 5:10 pm |
That’s one way to see it. Another is called “mutualism,” yet another is how most economists view trade: nations with strong trade relationships don’t go to war with each other lest they wreck themselves