As per the report released in final quarter by World Bank in 2017, Russia is on its recovery stage and the industrial production is expected to develop the employment rate. The country, since 2010, has been in an attempt to establish ties with other countries for trading and economic sanctions. The oil prices tend to affect the economic scenario of Russia and the government currently works on this variable to achieve sustained growth.
It is also understood from the report that the public debt percentage is increasing year by year which can affect the GDP growth of Russia. The advantage for the local market is the reduction of policy interest rate and it is a way by which many traders have found it beneficial. The export and import industry has not performed in recent times. In 2011, it was on the positive side and hence, it improved the GDP and reduced unemployment rate. However, it was during 2015 that the industry has undergone a steep decrease to -37.3% which is the reason for economic stagnation.
The graph is meant to understand the pressure and economic status of both the countries. Pink represents China while grey represents Russia. It is evident that Russia is now positioning its economic status to cope with other countries and the fluctuations are steep. On the other hand, China is quite stable when compared to Russia.
The fiscal freedom status of both the countries does not have a vast difference. Russia faces good fiscal freedom and it falls at 92.5% while China encourages a good degree of fiscal freedom at 93.4%. In other words, it is a free market in both the cases. The fiscal freedom as per the world record is 68.9% and the countries have proved that they are in their stages of development (Heritage, 2017).
Based on the graph, it is clear that the financial freedom has once been high in Russia but has rapidly fallen down from 70% in 1997 to 30% in 2005. Though there has been a slight increase in the financial freedom in 2006, it again dropped in 2013 (World Bank, 2017). On the other hand, the financial freedom of China was once at 50% in 1995 but since 2000, it remains at the same 20%. This is considered to be a poor degree of financial freedom for both the countries. It calls for restructuring of the private industry to develop the financial flows.