Economic Stagnation in Satellite States and USSR

Under Brezhnev

Soviet GNP growth falling from approximately 4% for much of the 1970s to only 1% in 1979-80.

Oil Prices

Once a strength for the Soviet Union, became a major weakness when world oil prices collapsed in 1986, falling from US $27.50 to $US11 per barrel in a matter of months.

Energy Exports Accounted for

40% of Soviet convertible currency

Despite Afghanistan War

(1979-89), Brezhnev continued prioritising military spending, with initially persisted under Gorbachev, Soviet military spending grew 3-4% between 1986-88, with major reductions only beginning in 1989.

Polish Foreign Debt

US $39.2 Billion in 1987 to US $40.8 Billion in 1989

Soviet GDP

fell 2.4% by 1990