러시아ㆍ유라시아

The economy has slowed in 2019. After growing by 2.3 per cent in 2018, the economy expanded by just 0.7 per cent year-on-year in the first half of 2019, with the slowdown explained by declining energy exports and the impact of rising inflation on household consumption.

The macroeconomic situation remains stable. Helped by the ongoing conservative fiscal policies, fiscal and current account surpluses remain healthy. Pre-emptive increases in policy rates by the Central Bank of Russia (CBR) towards the end of 2018 helped contain the inflationary impact of an increase in value-added tax (VAT). A more neutral policy stance is now being adopted in order to support growth.

There was some progress in the past year in the area of structural reforms, mainly in the form of an ambitious investment plan. The government unveiled plans to spend 25.7 trillion roubles (US$ 390 billion) on physical and social infrastructure over the next five years.