Extracted oil in Russia correlates with real GDP growth in Germany

Extracted oil in Russia correlates with real GDP growth in Germany

Wow, Putin got reelected again. At least let’s call it like this for now. Who would have thought so? Well, this is a reason for us to start our Curious Correlation-page with a topical issue and to investigate Russia’s economy. One of their main drivers is the extraction of oil and related sales.



The two ways to interpret this:
As everyone knows, two data are dependent as soon as their development correlates. So there are just these two explanations for this phenomenon. I’m looking forward to your judgment.

  • 1. Extracted oil in Russia depends on the real GDP growth in Germany – the more the German economy grows, the more oil is produced in Russia. This could be related to the fact that Germany is a large buyer of Russian oil. A strong development of the German GDP also means more demand for Russian oil.
  • 2. The real GDP growth in Germany depends on the extracted oil in Russia – the more oil is produced in Russia, the more the German economy grows. This way of view is more tricky to explain. Maybe more Russian oil reduces the oil price and is therefore driving the german economy.

In other words: If you want the German GDP to rise, let Russia produce more oil. Or, if you want Russia to stop pruducing oil, reduce the German’s GDP growth. Obviously, the global economic crisis has no influence at all.

Sources:
Extracted oil in Russia: Wikipedia
Real GDP growth in Germany: nzz.ch

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