Main Features of Investment-Construction Activity in 2017

Olga Izryadnova – Head of Structural Policy Department of the Gaidar Institute; Leading Research fellow of the Macroeconomic Research Department, Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Russian economy development in 2017 was determined by the change in the four-year trend – amid sustainable quarterly dynamics fixed investments growth constituted 4.4% and that of GDP—1.5% against the previous year. Recovery of the investment activity favorable dynamics was characterized by a simultaneous investment growth in tradable and non-tradable sectors of the economy.

Increased budget constraints resulted in lesser share of state investments. In the context of current interest rate, the importance of enterprises’ own funds in financing fixed investments retained. The share of Russian banks’ loans in capital formation for financing fixed investments in 2017 was minimum. Private enterprises maintained growth of fixed investments nominal volumes thus offsetting instability of state and municipal enterprises’ investment activity.

Key words: investments, capital investments, volume of building jobs, commissioning of housing, tradable sector of the economy and non-tradable sector of the economy.