Russian limp growth means country will not reach advanced economy status

RUSSIA / FSU POLITICS - In Brief 11 Feb 2021 by Alex Teddy
On February 11 the IMF stated that Russia's anemic economy means that the country will not achieve advanced status. Growth was a poor 1.3% even before coronavirus struck. The economy contracted by 3.1%: less than almost any other major economy. That is partly attributable to the absence of a second lockdown. Another factor is the small size of the service sector. Low oil prices and sanctions mean that Russia's economy will remain in the doldrums,After 2014, Russian tax policy meant that public debt was kept down and reserves were built up. Inflation was controlled, and de-dollarization made headway. This imbued the economy with underlying strength. Growth will speed up in mid 2021. By then vaccines and rising oil prices will probably help. OPEC+ will probably increase production, too. However, Russia is said to face serious uncertainty. There remain several major geopolitical risks for the country. Sputnik V could help Russia recover faster than foreseen. However, the vaccine's rollout has been very slow.

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