Crisis in Russia: Russia predicts 20 years of economic stagnation

14:29 Oct. 20, 2016

Russia predicts 20 years of economic stagnation

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Country will drift towards ‘poor states', Economy Ministry says

Russian Economy Ministry has composed a long-term prognosis on the country's social-economic development, reaching as far as the year 2035, according to local news agency Vedomosti.

Read also: Putin admits impact of anti-Russian sanctions

While President Putin continues to assure that Moscow manages to gradually overcome the standstill, the Ministry predicts dozens of years of fight against the economic stagnation, and this fight is not going to be successful.

While the recession will be tackled in 2017, the economy's growth within the next 20 years will be extremely slow, about 1,5 times lower than the world's average, forcing Russia to drift towards poor countries.

People's revenue will reach the 2013 level only in 2021, and that's not even the worst-case scenario.  

Read also: Russian economy at risk of delayed recovery after Crimea flareup - Bloomberg

Neither more expensive oil nor higher percent of employed population will help the economy excel the stagnation.

‘We all know the recipe to overcome the stagnation – investments into infrastructure, technologies, health, education. But this task doesn't seem to be high on the agenda', says Andrey Klepach, the chief economist of Russian bank Vnesheconombank.

Source: vedomosti.ru (in Russian)

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