The slowdown of the economy, the decrease in demand, and high interest rates have significantly reduced the investment activity of Russian companies. In the industry, this has dropped to the lowest level in the last 16 years, says the lead researcher of the Institute of Economic Forecasting of the Russian Academy of Sciences, Sergei Tuhlo, who has been conducting economic surveys among the business community since the ’90s.
According to this, only 38% of businesses estimated in April that the volume of investments is “normal”. In 2024, this indicator was at 79%.
Last year, investments fell by 2.3%, and for this year, the Russian Ministry of Economic Development had already forecasted a further decline of 0.5%. The institution is set to present an updated estimate soon.
And the analytic center close to the authorities, CMACP, has constantly revised its forecasts downwards and now estimates a decrease in investments by 2–2.4%.
According to CMACP analysts, even the rise in oil prices will not improve the investment situation. High interest rates will direct resources towards financial placements, not towards investments in the real economy, and in non-energy sectors, investments will continue to decline.
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