In 2019 in the absence of reforms, the Russian economy will grow by less than 2018 decided in the IMF. By the end of this year, the Fund predicted the 1.7 percent economic growth, and in 2019 — only a 1.5%
Photo: Yuri Gripas / Reuters
For 2018 the Russian economy will grow by 1.7% with inflation of 3.5%, and in 2019 in the absence of structural reforms, growth will be 1.5%. This is stated in the press release of the International monetary Fund, published on the website of the organization.
The IMF noted that Russia’s economy is recovering from the recession 2015-2016 thanks to the authorities measures and rising oil prices. Inflation fell below the target of the Russian Central Bank’s 4%. This is due to weaker-than-expected economic recovery, tight monetary policy, as well as temporary control of the prices for food and energy.
Medium term, the IMF said, remains unclear because of the structural problems in the economy and the lingering impact of the sanctions.
IMF Executive Directors welcomed the authorities ‘ plans to increase spending on health, education and infrastructure. They also supported the authorities ‘ plans for pension reform, which
should help offset negative demographic trends.
While the IMF has called for greater targeting of social assistance expenditure.
Director of the IMF also highly appreciated the progress made in restructuring the banking sector. However, as a negative factor was marked last year’s failure of several large banks.
In addition, the IMF recommended strengthening transparency, accountability and handling of public enterprises and the corporate sector as a whole. The government can accelerate the productivity growth through enhanced competitiveness, promotion of trade integration and further diversification of exports, according to IMF experts.