Russia in International Economic Institutions in 2019
Russian Economy in 2019. Trends and Outlooks. Moscow. IEP. 2020. Issue 41, pp. 517-525
11 Pages Posted: 27 Oct 2020
Date Written: September 6, 2020
In 2019, the effects of geopolitical contradictions and increasing protectionism continued to influence the global economy, the Russian economy, the economies of our partner countries, and the current agendas of international institutions. The escalation of tensions undermines confidence across the business community and negatively affects investment activity. Investment growth in the G20 countries (China excluding) in 2019 dwindled to 1% (vs 5% in 2018). The growth rate of global trade fell to a record low since 2009 and amounted to 1%. According to the estimates released by the IMF, the negative impact of trade conflicts between the US and China is going to push down global GDP, to 0.8% in in 2020. Even in case of a favorable outcome of the tariff confrontation and the closure of the trade deal between China and the USA, the economies of China’s trading partners (the EU, Japan, South Korea) can expect to experience some negative consequences as a result of changes in the trade flows. The risks of a further slowdown in economic growth remain high, making obvious the need for collective action to restore confidence, strengthen inclusive growth, boost employment, and improve the well-being of citizens. The growing need for multilateral cooperation is also determined by the fact that digital transformation multiplies the cross-border effects of national policies, thus increasing the potential benefits of international cooperation, while at the same time also increasing the risks associated with failures in the operation of multilateral institutions. Under these conditions, Russia’s priority is to build a positive agenda in global and regional economic organizations, as well as cooperation on risks monitoring, development of measures aimed at their prevention overcoming negative unanticipated consequences for the global economy.
Keywords: Russian Economy, International Organizations, International Institutional Arrangements
JEL Classification: F5, F53, F55
Suggested Citation: Suggested Citation