The Russian economy is stagnating across almost all sectors, meaning that boosting growth will be impossible without deep structural reforms. But with President Vladimir Putin approaching a fourth term after having shown little appetite for such reform, there is no reason to expect much to change in the foreseeable future.
CHICAGO – In the early days of 2018, the Russian economy is stagnating. This is no statistical blip: the average annual growth rate in 2008-2017 for Russia was just 1.2%. Last year, Russia’s GDP-growth rate was 1.5%, compared to 2.5% in the eurozone and 2.3% in the United States – both developed economies that should be growing 2-3 percentage points slower than a developing economy like Russia. And, as the Russian economic ministry, the World Bank, and the International Monetary Fund all recognize, this poor performance seems likely to continue.
CHICAGO – In the early days of 2018, the Russian economy is stagnating. This is no statistical blip: the average annual growth rate in 2008-2017 for Russia was just 1.2%. Last year, Russia’s GDP-growth rate was 1.5%, compared to 2.5% in the eurozone and 2.3% in the United States – both developed economies that should be growing 2-3 percentage points slower than a developing economy like Russia. And, as the Russian economic ministry, the World Bank, and the International Monetary Fund all recognize, this poor performance seems likely to continue.