Russia has been one of the main casualties of the emerging-market sell-off. The rouble has hit a record low against the euro and a five-year trough against the dollar. Russia’s MICEX stock index is close to a six-month low.
The economy looks “condemned to stagnation”, says The Economist. It has been coasting for ten years on the energy boom. Now that oil and gas prices are no longer surging, GDP growth is likely to fall back to 2% this year.
A “bloated and inefficient state”, rampant corruption, shaky property rights, high labour costs and a lack of investment are major [...]
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