Russia's Economy is Booming!

NY Times -- Russia’s economy expanded an annual 8.5% in the first quarter, higher than economists expected, as consumer demand fueled an investment boom. The expansion followed 9.5% growth in the previous three months.

The government expects the economy, the world’s 10th biggest, to expand 7.6% this year after growing 8.1% in 2007 (see graph above - 2008 will be the tenth year of solid economic growth in Russia, averaging close to 7%).

Russian industrial output grew an annual rate of 9.2% in April, the most in nine months, as output of trucks, cars and construction materials surged. Real wage growth has advanced more than 12% every month this year, increasing demand for housing and consumer goods.