Russia : Growth prospects and policy debates

Abstract

This paper discusses Russia s growth potential in light of President Putin s target of eight per cent.The country has large investment needs, but low levels of financial intermediation.The economy is also highly dependent on raw material prices, which renders it prone to large economic fluctuations.However, there is no crisis similar to 1998 on the horizon and, most likely, no debt service problem this year.We conclude that Russia faces a huge challenge even in achieving a lower growth rate of about six per cent. Key words: Russia, economic growth