Page 35 - RusRPTMay19

Gross Fixed Capital Formation in Russia increased to RUB7593.9bn in the fourth quarter of 2018 from RUB4581.7bn in the third quarter of 2018. Gross Fixed Capital Formation in Russia averaged RUB3707.35bn from 2011 until 2018, reaching an all time high of RUB7593.9bn in the fourth quarter of 2018 and a record low of RUB1709.7bn in the first quarter of 2011.
Investment activity remains rather weak, increasing by 4.1% in 2018
(4.8% in 2017). This is especially relevant with respect to private investments, which must be a vital indicator not only of the stability of economic development itself, but also of the level of confidence in the government’s socioeconomic policy. Foreign direct investment in the non-financial sector has hit a new low for the past two decades — $1.9bn (only 1994 was lower at $0.6bn).
Chairman of the Accounts Chamber, Alexei Kudrin, said that the government’s plan to increase investments to 25% of GDP would most likely not be fulfilled. In his opinion, the implementation of this plan is hampered by the general investment climate, sanctions, caution in carrying out structural reforms, and tax increases. A plan to raise the level of investment in the Russian economy to 25% of GDP by 2024 was approved by the government in July last year. In 2018, the ratio of investment in fixed assets to GDP was 20.6%, the Federal State Statistics Service reported.
4.5 Labour and income
4.5.1 Labour market, unemployment dynamics
Population aging remains the main challenge for budget spending through to 2036 when the demographic dip from the 90s catastrophe passes out of the working population, the Finance Ministry warned in a budget forecast on April 1. Over the next 17 years the number of women under the age of 55 and men under 60 will decrease by 2.7mn people, with most of fall arriving in the next five years, the Ministry of Finance predicts. The number of older people, by contrast, will grow by more than 5mn. The demographic problems are urgent the ministry warned. Despite this years introduction of higher
35 RUSSIA Country Report May 2019 www.intellinews.com