Oecd Economic Surveys Russian Federation 2013 PDF Download

Structural reforms to improve the business climate are key to raising potential growth and economic resilience. As energy prices stagnate and labour and capital become fully utilised, growth is falling behind pre-crisis rates. Making the economy stronger, more balanced, and less dependent on rents from natural resource extraction is therefore a key challenge. This requires higher productivity growth and greater energy efficiency, both driven by competition, stronger investment and better matching of skills and jobs. The sequencing, political economy and implementation of structural reforms are all important. The strong macroeconomic framework needs further improvements. The new fiscal rule has anchored budgetary policies, but there are loopholes due to the possibility of tapping into oil funds, providing guarantees and shifting unfunded spending obligations on regions. Improving the business climate is most urgent. The authorities seem to have become more energetic on fighting corruption and strengthening the legal protection of businesses. Stronger and more sustainable growth is not possible without better use of skills and stronger innovation. Considerable resources are employed in low-productivity activities. Lifelong learning, activation programmes and temporary income support remain underdeveloped.