Russian economy destined to stagnate without reform, Kurdin warns

22/05/2016

Former Russian Finance Minister Alexei KudrinThe Russian economy will not start growing but will remain “at the bottom” if authorities do not start implementing structural reforms, its former Finance Minister, and Deputy Chairman of the Presidential Economic Council Alexey Kurdin warned yesterday.
“While we can that we have already passed ‘the bottom’, it is most likely that we are still somewhere close to it,” he said in a TV interview. “Unfortunately, since the old economic model has expired and a new one has not yet been built, we are likely to stay there…I think that our economy needs certain decisiveness. We have postponed important reforms and this will have the effect of postponing of economic growth.”
His remarks come the day after Russian President Vladimir Putin claimed that Russia’s recession had bottomed out, while Rosstat is calculating that GDP shrunk by 1.2% in the first quarter of 2016 year on year, but that it had fallen by 3.7% for the whole of 2015. Official forecasts, suggest that GDP will decrease by 0.2% in 2016 and will start to grow again in 2017.

Source: ITAR-TASS