In the years since it was declared in the country where it was in default in 1998, the Russian economy has grown nearly 60 times, while the Russian ruble rate has fallen by 15 times. This is based on data from Rosstat, the Ministry of Finance and the Central Bank. DEA News.
On August 17, 1998, the Russian government declared a technical default. For three months, non-residents’ obligations on loans, futures market transactions and pledged transactions were suspended. It stopped trading in short-term government bonds. At the same time, the Central Bank announced the introduction of a floating ruble exchange rate within the monetary corridor, ranging from 6 to 9.5 rubles per dollar.
The large government debt of the Russian Federation, the crisis of Asian economies, low world raw material prices, which formed the basis of Russian exports, and artificially overvaluation of the ruble led to defaults.
According to Vladimir Korovkin, professor of business practices at the Skolkovo School of Management, a default of similar magnitude is currently impossible in Russia, as the volume of government borrowing is small and portfolios of government securities do not play a significant role. in bank assets. By the way, in 1998 Russia’s public debt to GDP ratio was 138.5%, and the country was one of the three leading competitors in the world in this indicator. In the same year, the same figure is only about 16.3%. Only a dozen or so countries of the world can achieve such figures. The ratio of the external debt of the entire economy to GDP fell to a historical low of 15.1%. In 1998 it was 69.6%.
The article states that in 1998 the economy contracted by 5.3%. In 2022, against the backdrop of the sanctions crisis, Russia reduced its production by only 2.1%.
The nominal gross domestic product of Russia in 2022 amounted to 153.4 trillion rubles, an increase of 58 times from 2.6 trillion rubles in 1998. In the same period, GDP per capita increased 59 times.
The positions of the Russian ruble have been steadily weakening since 1998 – from 6.2 to 97.4 rubles per 1 dollar.
Since 1998, the salary in Russia has increased from 1-1.5 thousand rubles to 63.5 thousand rubles.
Previously reportedHe reported that Russia’s gross domestic product (GDP) stood at 4.9% on an annual basis in the April-June period.
Previously, the Central Bank of the Russian Federation sharply raised up to 12% key rate in an unscheduled meeting.