Page 31 - RusRPTFeb20

4.4​ Fixed investment
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), expects Russian investment to rise 25% of gross domestic product (GDP) in the next two years ​from 21.6% in 2019, Dmitriev said on the sidelines of the World Economic Forum.
“The investment target of 25% of GDP is very important. For instance, investment exceeds 40% of GDP in China, and it largely defines the future economic growth. We hope that the figure of 25% in Russia would be achieved in the next two years,” he said.
“It would allow us to attain economic growth of more than 3%, and a very important element of the growth is not only the use of budget funds for investment, but attraction of private investors, to combine budget and non-budget sources,” he said.
In 2018, investment stood at 20.6% of GDP.
Investment growth was almost flat over 9m19. ​Taking into account the higher budget expenditures in 3Q19, the slower growth in investment could be attributed to some deceleration in private investment.
Analysts expect higher budget expenditures and softer monetary policy to provide some support for investment activity in 2020. Despite some slowdown in November, they still expect relatively stable growth in 4Q19 in line with our annual forecast of 1.3%.
31​ RUSSIA Country Report​ February 2020 ​ ​www.intellinews.com