Russian economic report No.16 (June 2008), The World Bank

Bogetic, Zeljko and Ulatov, Sergey and Emelyanova, Olga and Smits, Karlis (2008): Russian economic report No.16 (June 2008), The World Bank. Published in: Russian Economic Report , Vol. www.wo, No. World Bank's Russian Economic Reports (2 June 2008)

Abstract

Russia’s short-term economic growth has accelerated above its long term trend, defying weak global conditions. In 2007, the economy grew by 8.1 percent on the heels of very high (and perhaps unsustainable) oil prices, robust domestic demand and strong macroeconomic fundamentals. Preliminary data indicate an even faster real growth in GDP and industrial production of 8.7 and 6.2 percent in the first quarter of 2008.

Rising inflation and capacity and labor utilization, tightening infrastructure constraints, and real wage increases outpacing productivity gains, however, suggest that the economy is overheating, i.e., aggregate demand is outpacing long-term productive capacity of the economy. Reducing inflation and reinvigorating the remaining structural reforms will be key policy challenges for the new Russian government going forward.

• Item Type: MPRA Paper
• Language: English
• Keywords: Russia; Russian economy; Russia economic developments; Russian health
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General; F - International Economics > F3 - International Finance; P - Economic Systems > P2 - Socialist Systems and Transitional Economies; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; I - Health, Education, and Welfare > I1 - Health; H - Public Economics > H6 - National Budget, Deficit, and Debt

References

Not available