Russian economic growth likely to peak 1.9 pct in 2018 and ease thereafter – BMI Research

The Russian economic growth is expected to ease next year. According to a BMI Research report, Russia’s real GDP growth is expected to peak at 1.9 percent this year and moderate thereafter. The nation has fallen into the middle income trap and will struggle to climb back out.

In spite of expecting further oil price gains in the quarters ahead, the lack of progress in much needed structural reforms, evident in sluggish productivity gains, will halt the economic rebound. Investor confidence would be diminished by the comparatively soft business environment and ongoing political tensions with the West. The upcoming Trump-Putin summit is not expected to deliver improved relations, while economic sanctions are expected to have stayed in place for longer, added BMI Research.