Economic Growth in Russia: Main Problems at the Current Stage

Abstract

The study aims to identify the problems of economic growth in Russia at the present stage of economic development. The study was conducted based on the analysis of quantitative and qualitative indicators of economic growth of Russia and international statistics. The paper assesses the quality and determines the causes of low economic growth in Russia. As a result of the study, it was found that in the structure of gross domestic product [GDP] in Russia, consumer spending occupies the main share, while the share of investment spending is insignificant, which impedes the improvement and renewal of fixed capital and production growth. The rates of Russian economic growth are lower than the rates in the world and are not sustainable. Low indicators of the quality of economic growth are observed. Moreover, the indicated problems include the stagnation of real income of the population, high growth in lending, uneven distribution of national income among members of society, and relatively high poverty. The main problems of economic growth are the continuing raw material orientation of the Russian economy, low investment activity, increased tax burden, social tensions caused by raising retirement ages, and economic sanctions and geopolitical conflicts arising in the world. The social orientation of the economic policy of the state is necessary to increase quantitative and qualitative economic growth indicators. The following tasks are of particular importance: increasing human capital, improving social infrastructure, effectively redistributing national income, emphasizing the economy of innovation, stimulating investment activity, and digitalizing all sectors of the economy.