Investment crisis looms over Russia

Further to all the previous hardships, Russian economy is now confronted by an investment crisis triggered by the COVID-19 pandemic and oil price drop.


According to experts, investments in Russia were growing fast in 1999–2010, at 9.7% per annum. In 2011–2019, the annual growth rate slowed down to 1.9% while in the second quarter of 2020 the investments drop reached 7.7% against a year earlier. Investments in small businesses experienced the greatest decline of 36%. Analysts are quite certain that investment activity will not resume in a foreseeable future.

Given the situation, Russians have started heavily investing in the real estate in Moscow. Thus, in July investing in residential properties in the national capital went up by 14%.

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