Economic Growth Remains Surprisingly High

Author(s): Pekka Sutela
Editor(s): Jeronim Perovic, Robert Orttung, Matthias Neumann, Heiko Pleines, Hans-Henning Schröder
Series: Russian Analytical Digest (RAD)
Issue: 38
Pages: 2-5
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Research Centre for East European Studies, University of Bremen
Publication Year: 2008

Russia's economic growth remained surprisingly high in 2007. The strong performance seems to be due both to unexpectedly high global energy prices and structural change continuing in the domestic economy. A new feature was fast growth in investments. This increase may imply that Russia is entering a phase of investment-led growth. On the other hand, there are evident signs of overheating, and higher inflation towards the end of the year has given rise to worries. The macroeconomic framework of the economy in undergoing change, and it remains open how policies will react to that. Growth will presumably remain robust for a number of years to come.

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