Key developments and challenges

The authorities have placed increasing emphasis on the need to modernise industry and the service sectors and diversify the economy away from excessive dependence on oil and gas exports. Improvements in the business environment, further regional development, deregulation and investment-friendly policies will be needed to advance these objectives and reach a more sustainable growth path.

Important steps have been made to facilitate progress towards the stated objective of turning Moscow into an international financial centre. This goal could be further advanced by strengthening banking supervision, improving the legal and technical financial infrastructure and creating an enabling environment to attract institutional investors.

The recent growth of GDP has been supported by a large fiscal stimulus. The challenge now is to consolidate the fiscal position without jeopardising the economic recovery.