Named the effect of a trade war for Russia

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Photo: Taras Litvinenko / “Kommersant”

Russia along with other BRICS members stronger will suffer from trade wars in comparison to other OECD countries and the Eurozone, writes the Organisation for European economic cooperation (OECD) in its report “Scenarios of the world economy until 2060”.

According to estimates of the organization, if the level of trade barriers will return to the 1990 level, GDP per capita will decrease by 18 percent the international average of 6 per cent in OECD countries (which included Russia), 4.5 percent in the Eurozone and from 18 per cent in BRICS (Brazil, Russia, India, China, South Africa).

While the BRICS countries, including Russia, have a chance to rectify the situation through reforms, primarily in the field of management and education.

Currently the combined GDP of the BRICS countries is growing faster than the global 6 per cent against 3.1. But without adequate changes, it will be reduced to 2 percent and lag behind the overall schedule.

Another thesis of the report: the OECD is lagging behind Asian countries in terms of production. The share of China and India in 2060 will account for 20-25 of the world’s GDP, while in all OECD countries — 40 percent. Demographic trends do not play in favor of European countries, forcing governments to raise taxes for 40 years, their level will increase by 6.5 percent.

Video, photo All from Russia.

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