Will Russia's Economic Growth Be Restored Soon?

© Sputnik / Natalia Seliverstova / Go to the photo bankLeft to right: Bell tower of Ivan the Great, building of Senate in Moscow's Kremlin
Left to right: Bell tower of Ivan the Great, building of Senate in Moscow's Kremlin - Sputnik International
According to Wirtschaftsblatt, the Russian economy is slowly recovering from the downturn. However, the economic crisis won't be over soon, the newspaper noted.

The economic growth may begin in the coming quarters, but it is likely to be significant.

"Even if Russia withstood the most difficult period of the economic crisis, its economic growth is yet to come," Wirtschaftsblatt wrote. "Only at first glance it seems that the economic crisis that started in Russia in 2015, will soon be over."

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So far, many Russian enterprises have to cut their investments which is why there are unlikely to be any significant changes in the economic situation in the near future. At the same time, there are still hopes for the improvement of the economic situation, as recent data show.

According to official data, Russia's GDP fell by only 1.2% compared to 3.8% in the first three months of 2016 while the gross investments increased by 8.2% for the first time over the last three years.

On the other hand, the gross savings declined by 9.9% in the first quarter of 2016. The export also doesn't expect any significant changes, showing significant slowdown in the first three months of 2016.

At the same time, German newspaper Die Welt noted that direct investments of the German companies in the Russian market reached a historical level that was previously surpassed only during the economic boom in 2006-2008 and 2010.

According to the Bundesbank, the investments reached 1.78 billion euros despite anti-Russia sanctions and their influence on economic relations between the two countries.

"This clearly shows that confidence in the positive development of the Russian economy and the hope for a speedy resolution to the political crisis is coming back," economic expert Michael Harms said cited by the newspaper.

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Since 2014, relations between Russia and the European Union, including Germany, deteriorated amid the crisis in Ukraine. Brussels, Washington and their allies have introduced several rounds of anti-Russia sanctions since Crimea became part of Russia in 2014 and for Moscow's alleged involvement in the Ukrainian conflict.

Russia has repeatedly refuted the allegations, warning that the Western sanctions are counterproductive and undermine global stability. Both Russian and European entrepreneurs repeatedly criticized the sanctions and stressed their negative impact on the economies of both Russia and the EU.

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