Presentation is loading. Please wait.

Presentation is loading. Please wait.

Russian Economic Report #28, Autumn 2012 October 9, 2012 The World Bank, Moscow Kaspar Richter, Sergey Ulatov Reinvigorating the Economy.

Similar presentations


Presentation on theme: "Russian Economic Report #28, Autumn 2012 October 9, 2012 The World Bank, Moscow Kaspar Richter, Sergey Ulatov Reinvigorating the Economy."— Presentation transcript:

1 Russian Economic Report #28, Autumn 2012 October 9, 2012 The World Bank, Moscow Kaspar Richter, Sergey Ulatov Reinvigorating the Economy

2 MESSAGES The economy performed well early in the year despite external headwinds. But now the economy is slowing. Economic policies can reinvigorate the economy by shoring up stability, building buffers against external volatility and lifting growth potential.

3 Strong First Half of 2012

4 Growth steady in Russia as recovery slows elsewhere Source: OECD, IMF, World Bank staff calculations Quarterly GDP growth, percent

5 External surpluses Source: Rosstat, Economic Expert Group, World Bank staff calculations Percent of GDP (LHS) and Dollar per barrel (RHS)

6 Fiscal surplus Source: Economic Expert Group, Ministry of Finance, World Bank staff calculations Percent of GDP

7 Strong domestic demand Source: Rosstat, World Bank staff calculations Contributions to growth, percent

8 Strong non-tradables and agriculture Source: Rosstat, World Bank staff calculations Growth, Jan to Jun, year-on-year, percent

9 Fast credit growth Source: CBR, World Bank staff calculations Credit growth, percent, yoy

10 Strong wage growth Source: Rosstat, World Bank staff calculations Real wage growth, year-on-year, percent

11 Unemployment rate at record low Source: Rosstat, World Bank staff calculations Percent

12 Poverty at record low Source: World Bank staff calculations Poverty projections

13 Weak outlook

14 Two oil price scenarios Source: World Bank staff calculations World Bank average oil price, US$ per barrel

15 Growth moderating Source: World Bank staff calculations GDP growth, percent

16 Economy already slowing Source: World Bank staff calculations Quarterly GDP growth, percent

17 Growth of key indicators weaker Source: Rosstat, World Bank staff calculations Real growth, year-on-year, 3mma, percent

18 Rising capacity utilization Source: Rosstat, World Bank staff calculations Percent

19 Real wage growth moderating Source: Rosstat, World Bank staff calculations Contribution to real wage growth, % y-o-y

20 External demand worse Source: Global Economic Prospects, World Bank staff calculations Real growth of world economy, percent

21 Reinvigorating the Economy

22 Macroeconomic Stability – Keeping inflation in check Source: Rosstat, World Bank staff calculations Percent, year-on-year

23 Building Buffers – Lowering non-oil fiscal deficit Source: Ministry of Finance, World Bank staff calculations Draft medium-term budget plan, percent of GDP

24 Building Buffers – Replenishing oil funds Source: Ministry of Finance, World Bank staff calculations Percent of GDP

25 Structural policy – wages grew faster than productivity Source: Rosstat, World Bank staff calculations Real excess wage growth over output per worker growth, yoy, percent

26 Structural policy – closing the productivity gap Source: OECD, World Bank staff calculations Gap in income, productivity and hours worked to US

27 Structural policy – 2018 policy goals (a)Fixed investment (% of GDP); (b) High-technology and science-intensive sectors (% of GDP); (c) Labor productivity (GDP per worker; 2011=100); (d) World Bank Doing Business rank

28 Thank you!


Download ppt "Russian Economic Report #28, Autumn 2012 October 9, 2012 The World Bank, Moscow Kaspar Richter, Sergey Ulatov Reinvigorating the Economy."

Similar presentations


Ads by Google