Page 33 - RPTRusFeb17

Factors behind the improved outlook included improving demand, new offices and hopes for greater political and economic stability.
4.4 Fixed investment
Russia -Fixed capital investment 2010 2011 2012 2013 2014 2015
Fixed Capital investment change y/y
6.3 10.8 6.8 0.8 -2.7 -8.4
GDP: Gross fixed investment capital formation, (local currency)
10,472,700 13,982,500 15,223,900 15,077,000 16,436,100 16,812,800
source: Rosstat
The sharp fall in investments and the lack of incentives for re-equipment is restraining the growth of Russia’s labour productivity, D eputy Prime Minister Olga Golodets said at a Sochi Investment Forum. The low cost of labour and the lack of incentives to invest contribute to the problem. In 2015, the combined net profit of Russian companies jumped 76% on the year, but investment fell 9%. In 2016, the combined net profit rose 23%, while investment fell 3%, she said. Financing the economy with state funds is not enough. “If we don’t restart the economy and don’t restart the main processes that affect changes in technologies, we will have no changes, and it would be more profitable for a company to deposit its profit with a bank,” she said.
33 RUSSIA Country Report February 2017 www.intellinews.com