Economics
Putin's Wealth Shift Aims at Russian Economy's Idled Engine
- Russian plan to squeeze consumers as sanctions pressure mounts
- Government is counting on investment to drive economic growth
Customers carry shopping bags after visiting the TsUM luxury department store in Moscow.
Photographer: Andrey Rudakov/Bloomberg
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As the U.S. tightens the noose of sanctions, Russia’s new plan to rewire its economy is counting on old-style state-led investment to drive growth rather than consumers.
President Vladimir Putin’s government wants to double the country’s total capital spending in ruble terms by 2024, under a blueprint published by the Economy Ministry. That would bring its share to a quarter of gross domestic output from 21 percent now, a pace of growth that’s more than twice the increase it envisions for retail sales.