bbc.co.uk). Therefore rising consumer spending in the BRICs is compensating for the weakness in the traditional economies.
Today we get news that the Russian economy is gaining speed again. Gross domestic product in Russia expanded 4.8% from a year earlier, the fastest pace since the second quarter of 2010, reports Bloomberg (bloomberg). Encouraging is the 9.2% jump in retail sales. This is the biggest increase since October 2008 after the 7.8% gain in August (Bloomberg). The huge Russian economy benefits from the vast reserves of oil & gas and its powerful agriculture production.
The Russian news suits the recent reports from China, where the retail sales jump 17%. We can expect the strong consumer spending growth in these countries to continue for years to come because of rising incomes and a huge backlog demand compared to the U.S. and Europe.