Slow Global Growth Is the Next Threat for Putinomics
Russia’s economy should gather some momentum into 2020, but growth will remain frustratingly slow, according to Bloomberg Economics. The government’s development agenda looks promising, but it’s heavy on infrastructure investments and productivity-boosting measures, which will take years to bear fruit. Mild stimulus isn’t enough to bridge the gap, but so far the Kremlin shows little inclination to do more. Indeed, it probably can’t without reneging on commitments to maintain price stability, wean the economy off oil and gas, and build up financial buffers.
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