Wednesday, January 20, 2016

Russia's Dual Economic Crisis

According to the latest update of the IMF's World Economic Outlook (WEO), released yesterday, Russian GDP will not only decline by -1.0% in 2016 (after falling -3.7% in 2015), it will lag the Commonwealth of Independent States (CIS), which will grow by 2.3% (excluding Russia).  The CIS (excluding Russia) is also projected to grow more than three times faster than Russia in 2017.  

Russia's economic crisis is a problem of growth and of relative growth as it struggles with a falling GDP and falling behind neighboring economies and behind global growth.  Poor economic management and a confrontational foreign policy are undermining Russia's ability to maintain economic growth and to achieve domestic and international political goals, which if prolonged threaten state cohesion.

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