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Russian Economy Could Grow by 3.5% by 2020

Russian-economic-forecastA recent report issued by the Russian Academy of Sciences shows the good state of the Russian economy which is expected to increase even more in the next years. Moreover, the economic output of the country is expected to double by 2020. Our lawyers in Russia can assist foreign investors interested in doing business here.

The Russian Academy of Sciences’ outlook goes as far as 2035

The growth predicted by the Academy should reach between 4 to 6% in the next years. However, this increase might span until 2035, which is why those being skeptical about these predictions at this moment could be wrong.

The report indicates that first, economic recovery should be the most important preoccupation of the government. This will imply a higher production rate and a reduction of “destabilization risks”. The next step will be speed up growth rates which should lead to a 3.2 to 3.5% economic increase between 2017-2020 and then from 3 to 3.5% between 2031 and 2035. According to the report, this should be possible thanks to the increasing demand for investments. In the next 3 years, investments should grow by 5.7%.

Official statistics are also optimistic, but a little more reserved

The ministry for economic development does not deny the report issued by the Academy, however its predictions are a little more reserved and does not go as far as 2035. Official reports stop at 2020 and indicate a 2.1% economic increase between 2017 and 2018 and a 2.2 – 2.23% for the 2019 -2020 period.

Another independent economist announces an economic growth of 1.5 to 2% in the next 3 years. However, the most important thing to notice is that all projections indicate an increase in the Russian Gross Domestic Product. Without a doubt, the growth will be influenced by many factors which cannot be predicted at this point, one of the most important one being the oil price.

What economists agree on is that this growth cannot occur naturally, but with the sustenance of the government and the implementation of policies which will attract foreign and local investors.

Foreign enterprisers who want to open companies here should know that there are plenty of industries performing quite well at this point. Those who want to open companies here can contact our Russian lawyers for assistance.

 

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