| On November 18, 2008 the 17th issue of the regular Russian Economic Report was launched at a press conference organized in the premises of the World Bank’s Moscow Office.  Klaus Rohland
World Bank Country Director for Russia The Report acknowledges that after a decade of high growth, the Russian economy is experiencing a slowdown in the wake of the global financial crisis. Findings of the Report provide a comprehensive analysis of the recent economic developments and the impact of the global financial crisis in Russia. The Report notes that while Russia’s strong short-term macroeconomic fundamentals make it better prepared than many emerging economies to deal with the crisis, its underlying structural weaknesses and high dependence on the price of oil make the impact of the crisis more pronounced than otherwise.  Zeljko Bogetic
World Bank Lead Economist for Russia “It's important to realize that Russia is still a commodity-based economy," said Klaus Rohland, the World Bank Country Director for Russia. "The medium-term challenge and strategy of Russia would be to move to a more diversified, competitive economy." Prudent fiscal management and substantial financial reserves have so far protected Russia from deeper consequences of this external shock. Zeljko Bogetic, Lead Economist for Russia, noted that “the government’s swift, comprehensive, and coordinated policy response so far has helped limit the impact of the crisis. However, a prolonged slowdown could necessitate a further fiscal stimulus package in 2009.” The Report notes that the short-term macroeconomic stabilization has remain immediate priority as the authorities continue to adjust their short-term policy responses to changing economic circumstances. But the crisis also presents an opportunity to address the medium- to longer term challenges of competitiveness, economic diversification, and financial sector modernization that are necessary to boost growth and living standards. This would ensure that Russia emerges from this global crisis with a stronger basis for dynamic, productivity-led growth and is better placed to take advantage of global integration. The thematic part of the Report discusses the issue of energy efficiency in Russia based on a recently released World Bank/IFC report “Energy Efficiency in Russia: Untapped Reserves.” The report notes that the amount of energy released from greater efficiency can cover the increased demand for energy until 2020 at one third of the cost of building new generation capacity. Most barriers to energy efficiency are regulatory and informational, requiring active government intervention. |
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