![Page 1: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/1.jpg)
Policy Uncertainty Clouds Medium-Term Prospects
Russia Economic Report September 2014 | Edition No. 32
![Page 2: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/2.jpg)
Russia Economic Report No. 32
1. Recent Economic Developments
2. Outlook and Risks
3. Paths to Diversified Development in Russia
![Page 3: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/3.jpg)
• Seasonally adjusted growth for the first two quarters was near zero. • Structural impediments slowed economic expansion even before the impact of
increased policy uncertainty amid increased geopolitical tensions. • The economy needed to internalize several rounds of sanctions,
countersanctions and measures to stabilize the economy: this meant operating in an environment of higher risk, which depressed domestic demand.
Russia’s economy is stagnating and
uncertainty is impacting investor and consumer
decisions
There are substantial risks to Russia’s
medium-term outlook
• Macroeconomic stability prevails and Russia remains in possession of large buffers to uphold stability in the near future.
• It is now policy uncertainty about the economic course the country will take that is casting the longest shadow on Russia’s medium-term prospects.
• Our baseline projection is one of near stagnation with growth of 0.5 percent in 2014, 0.3 percent in 2015, and 0.4 percent and 2016.
Economic recovery will need a predictable
policy environment and a new model of
diversified development
• The stabilization effort should go hand in hand with renewed focus on improving the economy’s microeconomic fundamentals.
• A more balanced portfolio of national assets will help overcome structural constraints to growth.
• Stabilization, transparent rules, better quality of public investment, and competition should be the reform priorities for the next decade.
1
2
3
Prospects for future poverty reduction and shared prosperity are
limited
• Restrained investment makes it less likely that well-paying jobs will be created, which could counterbalance the slowdown in income growth.
• Unless addressed, high inflation will hurt consumption growth, dimming the likelihood for further poverty reduction.
4
Main messages
![Page 4: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/4.jpg)
Russia’s Quarterly Growth GDP growth, y-o-y and q-o-q sa, percent
1.0
1.0
1.4
1.3
0.8 0.70.4 0.0
0.4
0.3 0.3 0.4 0.10.2-1
0
1
2
3
4
5
6
GDP growth, y-o-y GDP growth, q-o-q, sa
![Page 5: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/5.jpg)
Russia’s Growth Outlook GDP growth, percent, y-o-y
-2
-1
0
1
2
3
2012 2013 2014 2015 2016
Pessimistic scenario Optimistic scenario
Low risk scenario (March 2014) High risk scenario (March 2014)
Baseline scenario
![Page 6: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/6.jpg)
Russia’s current asset base: abundant natural resources, good human capital, improving infrastructure, but weak institutions
Russia’s asset portfolio is heavy on natural resources: distribution of wealth by assets, 2005, in percent.
43
24
33
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
AUS AZE CAN KAZ MYS NLD NOR RUS SAU TKM UKR ARE USA UZB VEN
Natural capital Produced capital Intangibles
![Page 7: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/7.jpg)
→ Development Challenges Poverty and Shared Prosperity
0.410
0.412
0.414
0.416
0.418
0.420
0.422
0.424
10
11
12
13
14
15
16
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Poverty rate, % Baseline scenarioOptimistic scenario Pessimistic scenarioGini (rhs)
![Page 8: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/8.jpg)
Recent Economic Developments: An Economy on the Threshold of Recession
![Page 9: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/9.jpg)
→ Weak Domestic Demand Growth composition, percent, y-o-y
-23
-15
-7
1
9
17Q
1 08
Q2
08Q
3 08
Q4
08Q
1 09
Q2
09Q
3 09
Q4
09Q
1 10
Q2
10Q
3 10
Q4
10Q
1 11
Q2
11Q
3 11
Q4
11Q
1 12
Q2
12Q
3 12
Q4
12Q
1 13
Q2
13Q
3 13
Q4
13Q
1 14
Q2
14
Consumption GFCF Change in stockExport Import DiscrepancyGDP growth
Note: Q2 2014: World Bank estimate
![Page 10: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/10.jpg)
→ Increasing Borrowing Cost Depress Investment
4
4.5
5
5.5
6
6.5
7
7.5
8
8.5
16
.09
.20
14
22
.07
.20
14
27
.05
.20
14
01
.04
.20
14
04
.02
.20
14
19
.11
.20
13
24
.09
.20
13
30
.07
.20
13
04
.06
.20
13
09
.04
.20
13
12
.02
.20
13
04
.12
.20
12
09
.10
.20
12
14
.08
.20
12
19
.06
.20
12
24
.04
.20
12
28
.02
.20
12
20
.12
.20
11
25
.10
.20
11
30
.08
.20
11
05
.07
.20
11
10
.05
.20
11
15
.03
.20
11
11
.01
.20
11
Central Banks Key Policy Rate (percent) and Russia’s CDS spreads (bps) for 5 year bonds
140
160
180
200
220
240
260
280
300
![Page 11: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/11.jpg)
→ Depreciation and Inflation Dampen Consumption
0.0225
0.023
0.0235
0.024
0.0245
0.025
0.0255
0.026
0.0265
0
2
4
6
8
10
12
2011 2012 2013 2014
Food Non-Food Services CPI
Exchange rate dynamics (Euro-Dollar basket) and Russia’s CPI inflation by components
![Page 12: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/12.jpg)
→ Consumption Held Back by Stagnating Real Wages
Real wage growth, percent, y-o-y
-10
-5
0
5
10
15
2009 2010 2011 2012 2013 2014
non-Market non-Tradables
Tradables Total
![Page 13: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/13.jpg)
→ … and by Households’ Debt Obligations Non-performing Loans as a share of total credit, y-o-y, percent
5
6
7
8
9
10
2010 2011 2012 2013 2014
Nonperforming Loans:Total Loans
Loan Loss Provisions:Total Loans
Nonperforming HH Loans: Total HH Loans
![Page 14: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/14.jpg)
→ Output Growth by Sectors
Non-tradable and tradable sector growth, y-o-y
-6
-1
4
9
14
2013 Q1 2014 Q2 2014
Electricity, gas, and water Construction
Retail trade Transport
Financial services Real estate
-1
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
4
2013 Q1 2014 Q2 2014
Agriculture Mineral extraction Manufacturing
![Page 15: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/15.jpg)
→ Limited Import Substitution Potential
Capacity utilization rate in manufacturing in percent and unit labor cost (2005=100)
40
45
50
55
60
65
70
Electronic and Optical Equip Food
Transport Vehicles Machinery & Equip
Textile & Clothing Manufacturing
100
120
140
160
180
200
220
240
260
280
300
![Page 16: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/16.jpg)
World Bank Outlook for Russia: Stagnation in the Face of Policy Uncertainty
![Page 17: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/17.jpg)
Russia’s Growth Outlook GDP growth, percent, y-o-y
-2
-1
0
1
2
3
2012 2013 2014 2015 2016
Pessimistic scenario Optimistic scenario
Low risk scenario (March 2014) High risk scenario (March 2014)
Baseline scenario
![Page 18: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/18.jpg)
Benchmarking Russia’s Growth Global GDP growth, percent, y-o-y
-12
-8
-4
0
4
8
12
Russia OECD HIEU Emerging Other Emerging
![Page 19: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/19.jpg)
Subdued Global Growth Outlook
Global real GDP growth, percent, y-o-y
2009 2010 2011 2012 2013 2014f 2015f 2016f
World -1.9 4.3 3.1 2.5 2.4 2.6 3.2 3.4
High Income -3.6 3.0 1.8 1.5 1.2 1.8 2.4 2.5
Developing Countries 3.0 7.8 6.3 4.8 4.8 4.5 5.0 5.3
Euro Area -4.4 1.9 1.6 -0.6 -0.4 0.9 1.4 1.8
Russia -7.8 4.5 4.3 3.4 1.3 0.5 0.3 0.4
![Page 20: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/20.jpg)
→ Development Challenges Poverty and Shared prosperity
0.410
0.412
0.414
0.416
0.418
0.420
0.422
0.424
10
11
12
13
14
15
16
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Poverty rate, % Baseline scenarioOptimistic scenario Pessimistic scenarioGini (rhs)
![Page 21: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/21.jpg)
Policy Risks
The stalling of structural reforms represents a down-side risk to Russia’s
medium- and long-term outlook.
Structural constraints in the economy could diminish the effectiveness of
the Central Bank’s disinflation policy.
In the current environment of elevated inflation risk, it will be particularly
important to adhere to fiscal prudency.
![Page 22: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/22.jpg)
Special Focus Note Paths to Diversified Development in Russia
![Page 23: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/23.jpg)
Russia reached its potential output
Russia’s potential growth (in percent) may be slowing.
0
1
2
3
4
5
6
7
2009 2010 2011 2012 2013
RussiaBRICS Average (excluding Russia)EU11 Average (excluding Croatia, Latvia and Luthuania)Resource Rich* Average
![Page 24: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/24.jpg)
How to reverse the slowdown in potential output? In the boom years growth became gradually less driven by productivity increases.
Total factor productivity growth growth slowed as productivity gains from first generation reforms wore off
-15
-10
-5
0
5
10
151
99
3
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Pe
rce
nt
Total Factor Productivity
Capital
Labor
GDP Growth
![Page 25: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/25.jpg)
The National Asset Approach Assets can be classified into three categories: natural resources, built capital, and national institutions.
Natural resources - minerals, arable land, and forests - are largely endowed, but technological progress and better management can radically alter their economic value.
Built capital - physical and human capital, in the form of adequate infrastructure and a healthy and skilled labor force.
National institutions - the regulations and mechanisms that a country has put in place to manage resource rents, deliver public services - such as roads, security, health care, and education - and regulate private enterprise.
Three ways to integrate and grow: export product share, by factor intensity
![Page 26: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/26.jpg)
Russia’s current asset base: abundant natural resources, good human capital, improving infrastructure, but weak institutions
Russia’s asset portfolio is heavy on natural resources: distribution of wealth by assets, 2005, in percent.
43
24
33
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
AUS AZE CAN KAZ MYS NLD NOR RUS SAU TKM UKR ARE USA UZB VEN
Natural capital Produced capital Intangibles
![Page 27: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/27.jpg)
→ Abundant natural resources Russia is one of the richest countries in the world in subsoil wealth: Subsoil
natural resource wealth per capita, 2005, in constant 2005 US$.
118,111
99,706
86,620
32,468
24,238
24,090
20,328
20,268
12,644
10,102
9,563
9,194
7,061
5,365
3,940
3,478
1,970
982
United Arab Emirates (3)
Norway (4)
Saudi Arabia (6)
Turkmenistan (12)
Russian Federation (13)
Venezuela, RB (14)
Australia (15)
Kazakhstan (16)
Canada (19)
Malaysia (22)
Chile (23)
Azerbaijan (24)
Netherlands (26)
Uzbekistan (28)
Nigeria (30)
United States (33)
Ukraine (44)
Botswana (55)
![Page 28: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/28.jpg)
→ Improving infrastructure
0
5
10
15
20
25
30
35
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Russia
BRICS Average (excluding Russia)
EU11 Average
Resource Rich* Average3
3
4
4
5
5
6Russia
BRICS Average (excluding Russia)
Investment rates have improved but remain lower than comparators: Gross capital formation, percent of GDP –
Quality of infrastructure has been improving: Global Competitiveness Index: Quality of infrastructure, score 1 (low) to 7 (high)
![Page 29: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/29.jpg)
→ Good Human Capital
NORAUS USA
NLDCAN
CHI UAE
RUS
SAU
MYSKAZVEN
UKR AZE
TKMUZB
BWA
NIG
y = 7E-06x + 0.6294R² = 0.7405
0.40
0.50
0.60
0.70
0.80
0.90
1.00
0 10,000 20,000 30,000 40,000 50,000
HD
I V
alu
e,
20
12
GDP per capita, PPP (constant 2005 international $), 2012
2.0
2.5
3.0
3.5
4.0
4.5
Russia
BRICS Average (excluding Russia)
EU11 Average
Resource Rich* Average
The quality of human capital is higher than predicted by income by capita.
But there is a mismatch between education achievements and employer perception of the quality of education: Global Competitiveness Index: Quality of education, score 1
(low) to 7 (high)
![Page 30: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/30.jpg)
But Weak Institutions … for Managing Volatility, Providing Public Services and Regulating Enterprises
The quality of institutions lags in several dimensions: World Governance Indicators, 1996-2012 average
Average of
Governance
Indicators
Government
Effectiveness
Control of
Corruption
Political
Stability
and
Absence of
Violence
Regulatory
QualityRule of Law
Voice and
Accountability
Netherlands 1.71 1.89 2.15 1.11 1.79 1.75 1.58
Norway 1.71 1.92 2.12 1.29 1.39 1.91 1.6
Canada 1.62 1.87 2.04 1.01 1.59 1.73 1.5
Australia 1.59 1.75 1.98 0.98 1.63 1.75 1.45
United States 1.32 1.64 1.51 0.44 1.54 1.55 1.22
Chile 1.15 1.21 1.43 0.56 1.48 1.25 0.98
Botswana 0.7 0.54 0.89 0.97 0.61 0.61 0.58
United Arab Emirates 0.49 0.85 0.84 0.86 0.66 0.54 -0.81
Malaysia 0.36 1.06 0.27 0.2 0.53 0.5 -0.39
Saudi Arabia -0.36 -0.2 -0.23 -0.29 0.03 0.16 -1.62
Ukraine -0.58 -0.68 -0.92 -0.21 -0.53 -0.85 -0.27
Kazakhstan -0.63 -0.6 -0.98 0.16 -0.4 -0.89 -1.06
Russian Federation -0.73 -0.47 -0.93 -1.05 -0.33 -0.89 -0.7
Azerbaijan -0.88 -0.8 -1.08 -0.79 -0.59 -0.88 -1.13
Venezuela, RB -1.02 -0.98 -1.01 -1.12 -1.07 -1.33 -0.62
Nigeria -1.14 -1.02 -1.11 -1.73 -0.89 -1.24 -0.84
Turkmenistan -1.32 -1.47 -1.25 0.15 -1.99 -1.42 -1.94
Uzbekistan -1.34 -1 -1.07 -1.16 -1.66 -1.27 -1.91
![Page 31: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/31.jpg)
Weak Institutions … for regulating enterprises
The regulatory environment is highly restrictive of competition: Product market regulation, OECD Product Market Regulation Index
1.52
-0.5
0.5
1.5
2.5
3.5
4.5
Product Market Regulation (PMR) State Control Barriers to Enterpreneurship Barriers to Trade and Investment
Russia 2008 OECD Average 2008 OECD Average 2013
![Page 32: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/32.jpg)
Rebalancing Russia’s Asset Portfolio: Transparent Rules, Better Public Investment and Competition
More transparent rules for investors would enhance the contribution of
natural resources to Russia’s growth.
Better prioritization of expenditures and focus on results will strengthen
the quality of public service provision.
Increased private participation could improve the quantity and quality of
the delivery of public services.
Effective competition policy will increase the productivity of the
business sector. 32
![Page 33: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/33.jpg)
Thank you!
For more information about the World Bank and its activities in the Russian Federation, please visit:
http://www.worldbank.org/en/country/russia
If you would like to be access our Russia Economic Reports, please visit:
www.worldbank.org/eca/rer
For questions and comments relating to this publication, please contact [email protected].
![Page 34: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/34.jpg)
EXTRA SLIDES
![Page 35: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/35.jpg)
Baseline Scenario Projections
Main economic indicators
2012 2013 2014 2015 2016
GDP growth (%) 3.4 1.3 0.5 0.3 0.4
Consumption growth, percent 6.8 3.5 2.1 0.5 0.6
Gross capital formation growth, percent 0.6 -6.0 -8.1 0.3 1.0
General government balance (percent of
GDP) 0.4 -1.3 -1.1 -2.1 -1.0
Current account (US$ billions) 71.3 34.1 62.8 57.9 54.3
percent of GDP 3.6 1.6 3.1 2.8 2.5
Capital account (US$ billions) -32.3 -62.2 -113.0 -60.1 -55.6
percent of GDP -1.6 -3.0 -5.6 -2.9 -2.6
Oil price assumption (US$ per barrel) 105.0 104.0 102.9 99.5 100.1
Gross Domestic Product (mp), bln Rub 62218.4 66755.3 71785.3 76320.7 81223.6
CPI inflation 5.1 6.8 8.0 7.0 5.0
![Page 36: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/36.jpg)
Optimistic Scenario Projections
Main economic indicators
2012 2013 2014 2015 2016
GDP growth (%) 3.4 1.3 0.5 0.9 1.3
Consumption growth, percent 6.8 3.5 2.2 0.9 1.5
Gross capital formation growth, percent0.6 -6.0 -8.1 1.5 2.5
General government balance (percent of GDP) 0.4 -1.3 -1.1 -2.3 -1.2
Current account (US$ billions) 71.3 34.1 62.8 42.9 28.6
percent of GDP 3.6 1.6 3.1 2.0 1.3
Capital account (US$ billions) -32.3 -62.2 -113.0 -45.0 -25.5
percent of GDP -1.6 -3.0 -5.6 -2.1 -1.1
Oil price assumption (US$ per barrel) 105.0 104.0 102.9 99.5 100.1
Gross Domestic Product (mp), bln Rub 62218.4 66755.3 71785.3 76777.3 82441.9
CPI inflation 5.1 6.8 8.0 6.0 5.0
![Page 37: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/37.jpg)
Pessimistic Scenario Projections
Main economic indicators
` 2012 2013 2014 2015 2016
GDP growth (%) 3.4 1.3 0.4 -0.9 -0.4
Consumption growth, percent 6.8 3.5 2.0 -0.3 -0.3
Gross capital formation growth, percent0.6 -6.0 -8.5 -4.3 -1.2
General government balance (percent of GDP) 0.4 -1.3 -0.7 -2.8 -1.2
Current account (US$ billions) 71.3 34.1 69.3 82.2 80.8
percent of GDP 3.6 1.6 3.6 4.5 4.3
Capital account (US$ billions) -32.3 -62.2 -128.0 -82.3 -80.0
percent of GDP -1.6 -3.0 -6.6 -4.5 -4.3
Oil price assumption (US$ per barrel) 105.0 104.0 102.9 99.5 100.1
Gross Domestic Product (mp), bln Rub 62218.4 66755.3 71713.9 76753.9 81798.2
CPI inflation 5.1 6.8 8.0 10.0 8.0
![Page 38: Policy Uncertainty Clouds Medium-Term Prospects - World …...•A more balanced portfolio of national assets will help overcome structural constraints to growth. •Stabilization,](https://reader034.vdocument.in/reader034/viewer/2022042403/5f156065a86cce5c6a4fd6bc/html5/thumbnails/38.jpg)
Fiscal Impact: Balances under Pressure
-15
-10
-5
0
5
10
0
5
10
15
20
25
2007 2008 2009 2010 2011 2012 2013 2014
Non-oil revenues, percent of GDP Oil revenues, percent of GDP
Non-oil balance, percent of GDP Total balance, percent of GDP
Federal budget revenue and balance, 2007-2014, percent of GDP