Bloomberg announced the start of the largest restructuring of the Russian economy
Russia’s economy is experiencing the largest in the last 15 years of change. At the same time, the authorities carried out the conversion “without fanfare and hype”, which are accompanied by similar changes in Saudi Arabia (Kingdom launched the Vision 2030 program in late April).
The result of the collapse of the oil market was the restoration of a number of Russian industries. “New drivers of growth have emerged. These are agriculture, chemical and food industry, domestic tourism, “- said the agency, Deputy Finance Minister of Russia Maxim Oreshkin. At the same time, they have not yet managed to close the structural drop in other industries, acknowledged the official.
The agency notes that the longest recession in 20 years in Russia may end up in the third quarter of 2016. Annual inflation slowed to 7.3 percent, down from the maximum of 13 years in the value of 16.9 per cent (it was achieved in March last year). The contribution of agriculture to GDP increased to 4.4 percent – the biggest figure since 2003, Bloomberg notes.
The transition to a floating exchange rate has helped many sectors of the economy. However, the main difficulty experienced by Russian energy market and the fall of international sanctions, the agency said.
“Some sectors have benefited from the devaluation. But this is a one-time gain. The shift is, but the restructuring process has not yet begun. What is needed – as an investment and investor confidence, the reforms “, – said the head of the Economic Expert Group Evsei Gurvich in Moscow.
The investment climate remains the most problematic point in the Russian economy. At the same time there is some progress in this area. Bloomberg reminds that in the ranking of Doing Business World Bank, the country has risen to 51 th place.
Finance Minister Anton Siluanov said that Russia’s economy has adapted to the current situation in the world economy. The official said the growth of agriculture and industry. According to the Minister, such adaptation has occurred due to floating ruble exchange rate, measures of support for key sectors of the economy.
Russian GDP fell over the same period last year to 1.2 percent in the first quarter of 2016. In 2015 the Russian economy shrank by 3.7 percent.