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Russia’s Economy: Smoke and mirrors

Posted by Matt in February 28th, 2008

As Vladimir Putin stands aside (sort of), how much has he to do with Russia’s booming economy—and how long can it last?

Yet the truth is that Russia’s economy began its rebound 18 months before he became president. Behind it lie three factors: a revival of private initiative, oil prices that have risen fourfold during his presidency and macroeconomic stability. Only the third can be credited to Mr Putin. The economy is now more dependent on oil than ever. And the outlook is bleaker: a slowing world economy means that oil prices may not rise further, and could even fall.

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