Social Sciences
5 years ago

Russian economy set for mid-term recovery despite geopolitical tensions and inflation.

RePEc: Research Papers in Economics
EDB Macroreview, April 2019. Russian Federation: trends and forecasts
Alexey Kuznetsov, Aigul Berdigulova

Paper Summary

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The Russian economy grew in 2018 due to higher exports, consumer spending, and investments. However, growth may slow temporarily due to increased taxes and interest rates. The Russian ruble became more volatile due to geopolitical tensions and U.S. sanctions. Inflation increased in 2018 but is expected to slow down in 2019. The federal budget had a surplus in 2018 and is expected to focus more on investment in the future for higher economic growth.