The Beginning of a Russian Economic Boom
It is likely that the imminent Russian election, scheduled to take place within the first quarter of 2018, will showcase very little competition. Given the significant amount of influence of Vladimir Putin, current President of the Russian federation, and the lack of political integrity in any opposition which may threaten his chances, it is likely that the current President of Russia will take the country’s leading role for six more years.
Russia has recently undergone a series of economic enhancements, which will , if anything, bolster Putin’s campaign. The drastic inflation rate which was once an infamous hallmark of the country, is now beginning to show signs of sluggishness. To be precise, the inflation rate is supposed to be as low as 4 percent this year. According to a report by the state statistic services, retail sales can boast a 3 percent increase this month, a significant improvement relative to the prior year.
Consumer demand has proliferated as well. The external shift in aggregate demand has, expectedly, driven up prices. Ordinary commodities have had as much as a 15 percent increase in their prices. Sometimes, it would be more.
Cheif Russian economy at Bank of America, Merrill Lynch, has echoed the optimism “ “It’s a broad recovery, and it will continue,”, further adding “ “There is strong fundamental support.”
However, with every economic expansion, there are always scopes for improvement. One of the most significant concerns deals with the vulnerability of the Russian banking system. Several banks , in the pursuit of betting against the ruble, lost possession of monetary assets.
Vladimir Tikhomirov, chief economist at BCS Global Markets, shared his view “ So far, the central bank has managed to keep the banking system working” and proposed a caveat “…..the cost of saving these banks is growing”.
With these economic enhancements, the country is looking at a brighter future. Many are hesitant to change the authority. A recent survey conducted by Levada Survey determined that about 66 % of voters are likely to favor Putin’s re-election.