Handelsblatt: Russia on verge of recession

Handelsblatt: Россия на пороге рецессии

“Tight fiscal policy and a slow digitalization: according to economists, Russia faces a recession. Primarily affects middle business”, – writes the German newspaper Handelsblatt.

On the negative trends warns Ombudsman under the Russian President for human entrepreneurs Boris Titov. Institute of Economics growth them. P. A. Stolypin, Chairman of the Supervisory Board of which is the Titov, reported that a technical recession threatens to occur this year, and not in 2021, as forecast by the economy Ministry.

“According to the report, during the year the number of small and medium-sized business decreased by 7-8%, – the journalist Andre Point. In absolute terms, the number of medium enterprises fell by 1,500 firms and small – to 18200”.

At the same time significantly increased the number of microenterprises, i.e., companies with number of employees less than 10 people. Experts explain this trend by the fact that some small businesses have turned to micro-enterprises.

“Still fixed at the moment the growth of the economy provided only to large enterprises and public sector, according to analysts. They warn that the implementation of the Kremlin declared by national projects behind schedule. Especially industry, which is expected multiplier effects, for example, the digitalization of the economy, sluggish developed”, – is spoken in article.

“However, Rosstat reported on the growth of GDP in the first quarter by 0.5%. According to the Ministry of economic development, in the second quarter, the economy and even increased by 0.8%,” – reports the edition.

“But in General, the data of the Ministry of economy is far from the goals outlined by Putin – specifies a Point. – Russian President demands from the government growth not less than 3% per year.”

“Besides, it is becoming increasingly apparent conflict between the individual institutions responsible for economic and financial policy. Recently, the Minister Oreshkin and the head of the Central Bank Elvira Nabiullina took at one of the events in an open debate about the means of higher economic growth”, – the newspaper notes.

“At the same time Stolypin Institute are not alone in their anxiety about the full-fledged recession: Oleg Filipov of the Ranepa, said that the first half in a number of industries became “the worst since the 1998 crisis,” – said in the article.

“It should take into account external shocks, which in the first months of the year, it seemed, faded into the background. So, after the recent statements by the Ministry of economy of the USA about a new round of anti-Russian sanctions increases fear of them, which seemed in the winter and spring are behind us. In recent days, the ruble has considerably handed over positions”, – specifies the edition.

“Moreover, the impending trade war between the US and China reduces the price of oil, resulting in cheaper essential goods of Russia. If the Kremlin will not leg it in the realization of billions of dollars of programs to stimulate the economy, called “national projects” in the near future the Russian economy will really be in recession,” concludes Handelsblatt.