Kudrin forecasting zero growth for Russian economy in next 2-3 years, possibly even drop in GDP

Former Finance Minister Alexei Kudrin is predicting zero growth for the Russian economy in the next 2-3 years due to weak inflows of investment.

Former Finance Minister Alexei Kudrin is predicting zero growth for the Russian economy in the next 2-3 years due to weak inflows of investment.

At an American Chamber of Commerce conference on Tuesday, Kudrin said that up until the time the conflict with Ukraine intensified and sanctions were imposed against Moscow, the Russian economy had had structural problems that brought about a drop in potential GDP growth to 2-2.5 percent.

"Over the coming 2-3 years, I think we'll see economic growth of around zero, possibly due to the lack of investments we are now feeling. It is possible that we'll see investments this year at last year's level. This is not enough to develop and maintain growth above 1 percent," he said.

Increased sanctions could bring about a recession in Russia and even a 3-4 percent drop in the growth rate of the economy, if not more, Alexei Kudrin said at an American Chamber of Commerce business forum.

"I'm not ruling out that sanctions might provoke a recession in Russia and possibly not even for one or two years if banking transactions in other currencies are further restricted. Excluding Russia from SWIFT is being discussed; this alone could bring about a drop in the economic growth rate in Russia, and by a large amount - 3-4 percent," he said. 

Read more: How critical are the new EU and U.S. sanctions for Russia?

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