The Russian economy shows slow but steady growth

28 december 2018 | TVC

The Russian economy is growing at a slow but sustained pace and in the medium term this trend is expected to solidify. That's the opinion expressed by the Chief Adviser to the Head of the Analytical Center Leonid Grigoriev in an interview for TVC.

Leonid Grigoryev
Leonid Grigoryev
Chief Adviser to Head of the Analytical Center

"The economy began to show first signs of recovery in 2016. 2017 and 2018 saw slow growth. I have not yet seen any fast growth forecasts for 2019 but there do exist such expectations for 2020 and later. Please note that we are currently seeing an increase in equity investments by companies. Given the sanctions and the overall anxiety, sustained growth even at a very slow pace and a balanced budget are both positives," Mr Grigoriev said.

The expert also noted that the fluctuations in oil price over the past several days have been a result of the US's foreign policy.

"Throughout the year the US has expanded oil production by about 2 million barrels. Russia has also boosted production by a significant amount as has Saudi Arabia. Iran and Venezuela have cut back output," Leonid Grigoriev explained. "On the whole the year is ending with a glut of oil as more has been produced than has been consumed. But we do have the agreement with the OPEC under which output is to be reduced by 1.2 million barrels a day and it's kicking in in the new year. There was a spike as a result of sanctions when the price of oil soared. In other words, the US state department or its foreign policy is effectively regulating the global price of oil."

The expert noted that for Russia to achieve a balanced budget the price of a barrel of oil must be at least 4 thousand rubles.