Dialogue Chain. Episode 6. Apurva Sanghi, lead economist for Russia of the World Bank Group, talks about ways to double the potential growth rate. Questions by Evsey Gurvich, head of Economic Expert Group, a leading Russian think-tank.
The large-scale National Priority Project in housing has the potential to cause an accelerated increase in real estate prices, household debt, and banks’ credit risks. Moreover, explosive market growth could give way to a slump when the Project comes to an end.
Russia’s potential economic growth rate is estimated at 0.7-1.3%, depending on the calculation method. Total factor productivity (i.e. knowledge, technologies, innovations) contribution has been used up.