ZCZC
BCN-19
RUSSIA-ECONOMY-INVESTMENT
Low investment activity hinders acceleration of Russia’s economic growth –
experts
MOSCOW, Feb 25, 2019 (BSS/TASS) – Low investment activity of business is
holding back growth in the Russian economy, according to the report on the
economic situation in Russia, prepared by experts of the Russian Presidential
Academy of National Economy and Public Administration (RANEPA) in cooperation
with the Gaidar Institute.
“The recent decisions of international rating agencies that are favorable for
Russia are based primarily on the macroeconomic indicators it demonstrates.
Judging by the President’s State of the Nation Address to the Federal
Assembly, the goal of preventing it from deteriorating is still considered
one of the most urgent.
However solving another vital task – growth at the expense of growth of
investment – raises many more questions,” the report said. This is due to the
weak investment activity of the business, the experts wrote, noting that
therefore, sharp reaction of the business to events around Baring Vostok
investment fund is understandable.
At the same time, the price of both improvements and deterioration of the
quality of the internal business climate only grows as traditional for Russia
external sources of income for objective (market, technology) or subjective
(geopolitical) reasons are under increasing pressure.
“Thus, the EU and the United States ultimately succeeded in making Nord
Stream 2 operating on very unfavorable conditions for Gazprom, which will now
make it even harder to conduct inevitable talks on transit with Ukraine,”
experts concluded.
Russia’s GDP growth in 2019 could reach 1.7-2%, which is higher than the
forecast by the Ministry of Economic Development – 1.3%, according to the
report on the economic situation in Russia, prepared by experts. According to
the report since cyclical growth can be considered fairly stable, a serious
external and internal negative shock could lead to a slowdown.
“In the absence of such negative shocks for the conjuncture or structural
component, GDP growth in 2019 will be, according to our estimates, in the
range of 1.7-2%,” the report said.
According to preliminary data from the Russian State Statistics Service
(Rosstat), the country’s GDP in 2018 grew by 2.3%, which is the fastest
growth rate since 2012. At the same time, according to the Ministry of
Economic Development GDP growth in 2019 will reach 1-1.3%.
BSS/TASS/HR/1440