Professional Documents
Culture Documents
Recovery
5. World oil prices
Russia bounced back from the August 1998 financial crash with surprising speed. Much
of the reason for the recovery is that world oil prices rapidly rose during 19992000 (just
as falling energy prices on the world market helped to deepen Russia's financial
troubles), so that Russia ran a large trade surplus in 1999 and 2000 .
6. Domestic industries
Another reason is that domestic industries, such as food processing, had benefited from
the devaluation, which caused a steep increase in the prices of imported goods
For the first time in many years, in 2000 unemployment fell as enterprises added
workers. Since the 1998 crisis, the Russian government has managed to keep
social and political pressures under control, and this has played a vital role in
bringing about the current recovery.