In a June 20 report the Organization for Economic Co-operation & Development criticized the government for stalling economic reforms and increasingly interfering in the economy. "Russia's long-term growth depends on checking such tendencies and reinvigorating market reforms," the report warned. EDITED BY Edited by Rose Brady
Is The Economic Boom Ending For Russia?
Concerns are growing about Russia's economy. In the first quarter of 2005 gross domestic product grew at an annual rate of 5.2%, well below the 7.6% recorded a year earlier. In May industrial production grew just 1.4% year-over-year. The slowdown reflects stagnation in oil output linked to the government's legal attack on the Yukos oil company, as well as export bottlenecks. But rising inflation and a strengthening ruble are also squeezing manufacturers.