YEREVAN, August 25. /ARKA/. Russia has entered the negative phase of the economic cycle, head of the Russian ministry of economic development Aleksey Uliukaev said in his article at Vedomosti, RIA Novosti reported.
Shortage of demand is currently an essential obstacle on the way to sustainable growth. In these circumstances, reduction in government spending will even aggravate the negative economic trends, thus preventing from substantial improvement of fiscal positions, Uliukaev said.
According to the minister, stagnation seen in the Russian economy since 2012 is mainly caused neither by global unfavorable conditions nor by geopolitical factors, but, first of all, by weakness of the Russian economy.
“We should admit the quality of institutions we have makes it impossible to achieve substantial improvement of business climate and attract investors”, Uliukaev said. –0—