According to the Federal Statistics Service, which is based out of Moscow, the economy in Russia grew very quickly in 2007. In fact, it increased by 8.1 per cent. That is the fastest growth on record since 2000.
The key element helping to fund this record growth is the flow of money into the country. Capital investment, consumer boom and even a solid property market increase has helped Russia's economy to flourish.
While this growth is considered internal, it is important to point out that it is actually spurred by money coming into the country from foreign investors.
Additionally, the average wage in Russia increased in 2007 at 16.2 per cent. Also helping, retail sales there grew an estimated 15 per cent in 2007.
On the other side of the coin, inflation also grew here. Inflation in Russia for 2007 was 11.9 per cent. This is the first time since 1998 that consumer price growth surpassed the previous year's mark. Inflation goals for Russia are 8.5 per cent.
Accordingly, Alan Greenspan, the former US Federal Reserve chief issued a warning to Russia that its inflation numbers would hurt the economy here.
There is little mistaking the growth in the Russian economy, which is expected to continue through 2008.
