How Is The Russian Economy Doing?

Moscow skyline. Image by René Conny Heinen via Flickr

DW: Where is the Russian economy headed?

Russia's economy is the world's eleventh-largest. Following a period of recession, it managed to return to growth last year despite Western sanctions widening. But can the country continue on the road of recovery?

Russian President Vladimir Putin, widely expected to secure a fourth term in the March 18 polls, oversaw a period of economic growth during his first two terms in office (2000-2008), boosting incomes across the country.

Those years were perceived as a welcome change from the financial instability of the 1990s, when many Russians lost their savings.

But Putin's third term in the Kremlin, which began in 2012, saw a decline in ordinary people's quality of life.

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WNU Editor: In Russia there is the economy .... and then there is the economy. Officially .... the stats show the Russian economy stagnating, purchasing power decreasing, and the standard of living going down. On the plus side .... inflation is 2% (which everyone in Russia is grateful for). There are no trillion dollar deficits. And more important .... everyone is working. What has helped is that low taxes and the development of a favorable environment for small businesses to grow has encouraged many people to start their own little enterprises. In 2013 (before sanctions) about 10% of the population had their own small business .... Money to be made for small businesses in Russia (Russia Beyond). I would put that number around 30% today, and it is growing. Of all the signs that I have found to be the most encouraging in Russia it is the development of this small entrepreneur class .... even the Communist Party is a strong supporter of this trend (at least that is what they say publicly).