Cbanker calls chronic stagnation Russia’s key economic threat

MOSCOW, Jan 12 (PRIME) -- The key problem of the Russian economy, which started growing quarter-on-quarter last year, is not to sink into chronic stagnation after a short period of recovery, Central Bank First Deputy Chairwoman Ksenia Yudayeva said at the Gaidar Forum on Thursday.

“This growth may only strengthen this year if there are no new external shocks,” she said.

“This is why the Russian economy’s problem now is not how to start a recovery, but in how not to roll back to low economic growth rates after a short period of recovery to a period of low economic expansion rates, to, in fact, chronic stagnation, how to ensure sustainable long-term growth rates.”

In 2016, the Economic Development Ministry expected a 0.5% decline in gross domestic product (GDP). No final data has been disclosed yet. Under the baseline scenario, the GDP in projected to rise by 0.6% in 2017, by 1.7% in 2018, and by 2.1% in 2019. The optimistic plan envisages an increase of 1.1%, 1.8% and 2.4% correspondingly.

According to President Vladimir Putin’s plan, which must be elaborated by the government by March 9, Russia’s economic growth must overshoot the world’s average rate by 2019-2020.

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