Recession ending, growth under way for Russian economy – Kudrin

Alexei Kudrin file photo

MOSCOW. Oct 4 (Interfax) – The recession in the Russian economy is ending with growth under way, but that growth will be gradual at first, Alexei Kudrin, head of the Center for Strategic Research, said.

“This year we’ll still have decline of 0.6%, statistically, but next year we’ll have approximately 0.5-0.8% growth. I repeat, that is statistically not as much as one would like, but we are no longer nose-diving,” Kudrin said at the Atlanta business forum at Crocus City Hall in Moscow.

The growth that is beginning “will be slow growth, it will be less than 1%,” he said. “This is more like stagnation for Russia,” he said.

But the economy has shown a new kind of flexibility in these conditions in the way it “responds to market signals,” he said. “Some are cutting costs, others are holding back investments and others still are beginning them,” he said.

But he said economic growth in Russia will definitely begin and will return to 3%-4% within five years.

[featured image is file photo]