Yeltsin 's program of radical, market-oriented reform came to be known as a " shock therapy ".
Under the government's cover, outrageous financial manipulations were performed that enriched a narrow group of individuals at key positions of business and government. From tocorruption and data fiddling became common practice among bureaucracy to report satisfied targets and quotas thus entrenching the crisis.
Panelists expect the economy to expand 1. Economic performance estimate on seven measures: gross domestic product growth, budget deficit and government debt for ; economic recovery — output compared with the pre-crisis peak; change in debt since ; change in unemployment from to ; and, finally, the deviation of the current account from balance.
Due to international sanctions, the government has been unable to borrow from abroad. Russia has the world's largest reserves. Imports totaled USD Since then there has been a noticeable drop in inflation, which drove the Bank to cut rates in September from Comprehensive data showed that GDP contracted 0.
Following the annexation of Crimea in March and Russia's involvement in the ongoing conflict in Ukrainethe United States, the EU and some other European countriesCanada and Japan imposed sanctions on Russia's financial, energy and defense sectors. Some observers place the blame on Western economic sanctionswhich have contributed to Russian poverty and economic uncertainty.
Coupled with a sharp slowdown in industrial production in March, analysts are now expecting the CBR to improve things for real wages further by cutting rates sooner than anticipated in June.
No economic policymaker will bother to look beyond the next election. Several factors are attributed for the post-transition recessions, all which made it a chaotic time with poor economic policies.