Paper
Pekka Sutela
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"Carnegie Russia Eurasia Center"
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Source: Getty
Other
Russia's Response to the Global Financial Crisis
While Russia’s short-term economy will largely depend on oil prices and the country’s demographic challenges, its medium-to-long-term outlook will be influenced by the lessons that leaders take from the crisis, which will affect Russia’s economic structure and policies for many years to come.
By Pekka Sutela
Published on Jul 29, 2010
While the timing and extent of the global financial crisis surprised many countries, Russia was generally prepared. Its macroeconomic management of the recession rightly earned accolades from several international organizations.
But Moscow’s industrial and social policy responses were not as praiseworthy, representing yet another victory of political tactics over economic strategy. Although Russia’s leaders saw the crisis as vindicating their past policies—including the reform strategies they devised from 2006–2008—most of the structural issues in Russia’s economy remain, with solutions likely delayed for several years. Russia’s fiscal decline— from an average of 7 percent annual growth before the crisis to a loss of 7.9 percent GDP in 2009—is the highest figure among G20 countries.
Russia’s economy in the near term will largely depend on oil prices and how Moscow handles the country’s demographic challenges. But the economy’s medium-to-long-term outlook will be influenced by the lessons that leaders take from the crisis, which will affect Russia’s economic structure and policies for many years to come.
About the Author
Pekka Sutela
Former Nonresident Senior Associate, Russia and Eurasia Program
Sutela was a nonresident senior associate in the Carnegie Endowment’s Russia and Eurasia Program, where his research focuses on the economies of Eurasia, especially Russia.
- The Underachiever: Ukraine's Economy Since 1991
- Russia’s Economic ProspectsArticle
Pekka Sutela
Recent Work
Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.
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