Russia will fail almost all development targets in 2020

RUSSIA / FSU POLITICS - In Brief 04 Nov 2019 by Alex Teddy

On November 2 Russian economics journal RBK published an in-depth study of Russia's economic targets set in 2008 for achievement in 2020. The country is due to miss almost every target and in some respects be worse off than in 2008. Real disposable income was supposed to increase by 70% from 2012 to 2020. In fact disposable incomes have been falling since 2014. In 2020 they are due to be 5% lower than in 2012. In 2012 the government projected that the GDP would grow about 65% by 2020. It now appears GDP will have grown only 5.8% in that time scale. Human capital, the business climate and tech have led to far less growth than was projected. The government aimed to halve the % of people living in poverty according to its 2007 figure. 13.4% were in poverty in 2007. Currently the figure is 12.7%.The plan was to spend 11% of GDP on human capital. The figure is now 6.6% which is lower than in 2007!The government over promises and under delivers. The goals were set in 2008 when oil prices were sky high and the economy was booming. Western sanctions have exacerbated negative trends.

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