photo: Gennady Cherkasov
“The dominance of the public sector and the monopolization inhibit the growth of investments and productivity,” — said in the report on risks for the Russian economy.
Expert wary of excessive state involvement in industries such as utilities, mining, transport, Finance, manufacturing electronics and equipment. According to them, this creates unequal conditions for business activity.
“Low indicators of Russia on corruption and the rule of law, most likely, are connected with the inefficiency of the judicial system and the significant influence of the government on the business environment and decisions, especially in those cases when it comes to large quasi-public corporations and banks”, — quotes the edition of excerpts from the document.
Moody’s experts note the progress in the high-tech sector of the Russian economy. The Agency estimated that over the last decade saw an increase in exports of computer and it services in 2,5 times, however, there are risks associated with state intervention.
“State intervention, which varies from a prospective of attracting firms on cyber security to espionage to force the transfer of control over successful start-UPS close to the government of the people, threatens the viability of the it sector, the report says.
To grow the Russian economy also makes it challenging demographic situation. Last year the influx of migrants for the first time in the period could not compensate for natural population decline, the Agency said. However, analysts hope that the shortage of manpower to fill labor migrants from Central Asian republics and Ukraine. Will help in solving this problem and the government announced in this year’s pension reform.
The outflow of capital mentioned in the overview of the main external risk. Last year foreign investors reflected on the insurance in case of external risks in the form of anti-Russian sanctions and began to get rid of Russian assets and national currency. Strengthening the sanctions rhetoric may lead to further capital flight and thus jeopardize the stability of the Russian financial market.