Russia will achieve only moderate, though consistent growth over the next five years as the government avoids undertaking structural reforms that could drive stronger growth. Instead, public spending will rise minimally to boost the economy now that macroeconomic stability has been achieved. Public and private demand will improve moderately in the coming years, through higher taxes will restrain a stronger pick-up while geopolitical tensions threaten a heightened risk of sanctions.
Frontier Strategy Group’s flagship Ahead of the Curve report on Russia 2023 advises multinational companies (MNCs) to develop a consistent, realistic internal view of the Russian market’s risks and opportunities in order to plan effectively for the next five years. Suggested actions discussed in the report include:
- Further develop relationships with key local partners and customers to best manage cost pressures in the market and adapt to their changing demands and needs.
- Optimize your operations to increase scale, find new demand and improve the cost-efficiency of your business.
“Despite the weak growth outlook, Russia will remain a critical market within any MNC’s EMEA portfolio and an important market in global portfolios,” said mark McNamee, practice leader for Europe at FSG, and author of this report. “Consider investing now to stay ahead of competitors as the likelihood of significant disruption to the market’s outlook remains relatively low.”
This report, and many others like it, is available in the Frontier Strategy Group Online store. Click here for sample pages to help you evaluate whether the report is right for you.