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4.4 Fixed investment
Russia -Fixed capital investment 2012 2013 2014 2015 2016 2017 Mar-2018
Investment (% of GDP)
24.3 22.9 22.0 21.4 22.5 23.5 15.3
GDP: Gross fixed investment capital formation (USD mn)
471,337 496,982 428,573 276,240 280,350 342,294 58,303
source: CEIC
Investment picked up over the summer, mostly driven by government spending into the national projects getting underway . But Russia remains badly under invested at some 20% of GDP, but needs to be at least 25% if Russia’s economy is not to stagnate. The government currently working on a set of investor protection laws that could make a change and will be introduced to the Duma in the last two months of this year.
Investments rose by 1% y/y in 2Q19, after a 2.6% y/y contraction in 1Q19.
This increase reflects higher government military and R&D spending in the second quarter, as the more narrow measure of investment activity published earlier showed roughly the same dynamics in 2Q19 as in 1Q19.
49 RUSSIA Country Report November 2019 www.intellinews.o
