Russians are heading to the polling booths on March 18, but where will the economy head after Putin gets elected president again?
In 2016, almost three presidential terms of Putin later, Russia’s GDP had increased by 4½ times to $1281 billion and its ranking improved to 12th place in the world. What generated this impressive increase in income in USD terms from 2000 to 2016? And can we expect high growth during Putin’s next six years in office? In his new policy brief, SITE director Torbjörn Becker discusses what can be expected for the coming six years by looking back at the economic progress Russia has made since 2000.
Although significant growth has been achieved since 2000, all of this came in the first two tenures of Putin in the Kremlin on the back of increasing oil prices. In order to generate growth in his upcoming presidential term, Putin and his team will need to address the significant needs for reforms in the institutions that form the basis for modern market economies. Otherwise, Russia will continue to be hostage to the whims of the international oil market and eventually lose most of its exports and government revenues as the world moves towards a carbon free future.
Interested in finding out more? Read the policy brief here.