Russia: record-breaking wheat crop and lower foreign investment

3 october 2016

Cereal production in the world and international flows of direct investment - these topics became central in the new issue of the Analytical Center’s bulletin on current trends in the global economy. While Russia claims a leadership role in wheat exports, a dramatic decrease is observed in attracting direct foreign investment to this country, according to experts.

Russia harvested a record-breaking wheat crop: the cereal production would reach 110.8 mln tons in 2016 (4.3% of the global production or 5th place in the world), including a wheat crop of 69.5 mln tons (9.4% of the global production or 4th place in the world). With such results, our country could become the largest wheat exporter in 2016/2017 agricultural year (the exports could reach 29.5 mln tons). Experts believe that this is positive news for Russia, even through world wheat prices are 2.5 times below the 2012 peak.  

In the annual report on direct foreign investment - World Investment Report - it is noted that despite slower economic growth the business in developed countries revived in 2015. The total international flows of direct foreign investment increased by 38%. The volume of direct foreign investment received by developed countries grew by 84% and developing countries - just by 9%. Investments into the BRICS countries, which, including Hong Kong, accounted for more than a half of the total investment in developing countries, increased just by 12% in 2015 due to a strong fall of the direct foreign investment inflow to Russia, Brazil, and South Africa, according to experts.

For more see the bulletin: Taking the Pulse: Global Cereal Production In focus: International Flows of Direct Investment.

For other bulletins on current trends in the global economy see Publications.