Russia's economy on the verge of stagnation
09.07.2013 4667

Russia's economy on the verge of stagnation

The degree of workload of the Russian economy is close to the limit and it does not have resources for further growth today, experts say in a round table discussion on the prospects for Russia's economic development.

Commenting on the three lines of efforts declared by the new Minister of Economics Alexei Ulyukaev to revitalize the economy (non-resource exports, growth in consumer demand, increasing investment), experts noted that there are very few conditions in today's Russia to implement these tasks.

As the chief economist of AFK Sistema Yevgeny Nadorshin said, further capacity building is possible, but hardly effective. In the coming years, unless serious measures are taken, the country will stagnate with GDP growth rates from + 1% to -1%. According to him, production needs investment, but neither the state nor the private sector is ready to take on this function and be responsible for the results. The expert believes that the state, as a more active player, is obliged to take a risk and start supporting business, otherwise the consequences for the economy will be dire.

Valery Mironov, Deputy Director of the Center for Development Institute of the Research Institute of the Higher School of Economics, is sure that to improve the situation with investments in production, a reform of the public sector is necessary, namely, the nationalization of state-owned companies, since at present they do not perform their functions and, according to the Ministry of Economy, regularly thwart investment plans. The expert also spoke in favor of expanding domestic demand and weakening the ruble by 10%.

According to Vladimir Salnikov, Deputy General Director of the Center for Macroeconomic Analysis and Short-Range Forecasting, labor productivity is relatively good in the real sector of the economy, it has shown slight growth over the past year, but still remains 2-8 times lower than in developed countries . This is largely due to outdated facilities, whose average age is 18 years.

A positive point, says Maxim Safonov, associate professor of RANEPA, is that the necessary business support institutions have already been created in Russia (the Direct Investment Fund, the Small Business Development Bank and others), but their work efficiency leaves much to be desired.

Experts agreed that there is no reason to expect significant growth in the near future. Yevgeny Nadorshin believes that the authors of the 2014-2016 budget cannot come to terms with economic realities and include in the main financial document an indicator of GDP growth in 2014 at the level of 3,7% in the hope that the existing problems will "resolve themselves." According to the expert, there are very few grounds for such hopes, and therefore the draft budget should be revised taking into account real indicators.

The degree of workload of the Russian economy is close to the limit and today it does not have the resources for further growth, experts say at the round table on the prospects of the economic ...

Latest News

Tamaris presented a new spring-summer collection of the NEWD premium line.

Elegant luxury – that’s what this line of the German brand can be called. The new collection includes premium models that will perfectly complete any look and become a spectacular addition…
21.05.2024 157

Sport Casual Moscow will present collections of sports and hiking shoes, clothing and equipment

The summer exhibition and presentation of Sport Casual Moscow will be held in Moscow, at the Izmailovo Alfa Hotel on June 3-5, 2024 with the support of the Ministry of Industry and Trade of Russia and the Russian Outdoor Group (Russian Outdoor…
21.05.2024 187

Jimmy Choo selects Princess Gauravi Kumari as its brand ambassador for India

Jimmy Choo is strengthening its position in India, the luxury footwear and accessories brand has attracted an Indian princess to its advertising campaign. Jaipur royal family member Princess Gauravi Kumari has been appointed Jimmy Choo India brand ambassador, writes...
21.05.2024 255

France sees a stronger leather trade surplus in 2023.

France sees leather exports grow by 6% in 2023 to reach €1 billion, while imports remain stable at €14 billion. A trade surplus of €5 billion was possible in...
21.05.2024 214

Ronnie Fieg turned Clarks loafers into sandals

The ongoing collaboration between Clarks and Kith sees the British moccasin brand launch two new sandal styles for spring/summer 2024. The new Ridgevale and Brixham silhouettes are available in four colourways...
20.05.2024 457
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning