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Infrastructure has been placed at the center of the Russian policy-maker's agenda, as it had become clear by early 2014 that the domestic economy was in need of enhanced domestic investment, especially to diversify away from extractive industries. Expectations in the first quarter of 2014 were for weak growth of around 1.4% GDP for the year, and there was a determination to focus on increasing inward investment while maintaining low inflation. Recent developments have been negative for the economy, as capital flight has been experienced alongside a weakened ruble. This has forced an increase in domestic interest rates and inflation seems likely to reappear. In the short term, at least, it seems unlikely that the private sector investment climate will improve.
Keywords: Manufacturing, Development, Investment, Potential, Survey, Sector, Issue
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