Russian Federation: 2007 Article IV Consultation: Staff Report; Staff Statement; and Public Information Notice on the Executive Board Discussion

IMF Staff Country Reports, October 23, 2007

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Canonical URL: Russian Federation: 2007 Article IV Consultation: Staff Report; Staff Statement; and Public Information Notice on the Executive Board Discussion

The staff report for the 2007 Article IV Consultation highlights the Russian Federation’s long-term perspective, economic developments, and macroeconomic policies.
Russia’s economic growth remains robust.
High oil prices and sound fiscal policy underlie Russia’s long spell of robust growth.
Executive Directors noted that Russia continues to face tensions in the policy mix designed to reduce inflation while preserving exchange rate stability.
Raising investment levels is particularly important in light of the projected decline in the labor force and the declining prospect for continued high productivity gains over the medium term.

Economic growth: Russia’s economic growth remains robust.
Growth drivers: High oil prices and sound fiscal policy are cited as underlying the robust growth.
Policy tensions: There are tensions in the policy mix between reducing inflation and preserving exchange rate stability.
Investment and labor force: Raising investment levels is emphasized given a projected decline in the labor force and reduced prospects for continued high productivity gains over the medium term.

Subjects: Balance of payments, Capital inflows, External debt, Inflation, Oil prices, Prices, Public debt
Keywords: Capital inflows, CR, Global, headline inflation, Inflation, ISCR, liquidity squeeze, money-market rate, Oil prices, rate, repo operation, Russia, staff appraisal, turmoil