Russia's Medium-Term Economic Prospects

Abstract

This report takes stock of the medium-term outlook for the Russian economy. It finds that the costs of renationalization, corruption, regulations and laws that impair the operations of businesses, and Western sanctions have combined to reduce economic output and slow recov- ery in Russia. Policy changes to address these issues could accelerate economic growth by as much as 4.4 percentage points per year. By assessing the likely course of Russia’s economy through 2025, this report should inform policymakers and business leaders in the United States, Europe, and Russia of the likely economic and fiscal implications of Russia’s current economic and foreign policies.