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Russia’s Growth Problem

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Russia’s Growth Problem

Bruegel,

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Dark clouds hover over the outlook for Russia’s economic growth.

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8

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  • Analytical
  • Eye Opening
  • Hot Topic

Recommendation

Russia’s economy is facing several strong headwinds: An aging population, economic sanctions and an overdependence on volatile energy markets are clouding the country’s geopolitical and economic prospects. Investing and doing business in Russia remain a challenge, as this cogent analysis from researchers Marek Dabrowski and Antoine Mathieu Collin finds. Executives, energy analysts and foreign policy professionals will glean much from this succinct but compelling report.

Summary

Russia underwent wrenching adjustments to its economy in the aftermath of the central planning that characterized the Soviet period.

In the wake of the collapse of the Soviet Union, output shrank. Economic reforms progressed at a glacial pace. Painful adjustments throughout the 1990s, along with rising oil and natural gas prices, contributed to an economic surge in Russia from 1999 to 2008. Yet the energy markets that raised the economy brought it down again in 2008–2009. The subsequent three years witnessed a recovery, followed by a growth slump and currency crisis. Russia’s incursion into Ukraine...

About the Authors

Marek Dabrowski is a nonresident fellow at Breugel, where Antoine Mathieu Collin was a research assistant.

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