World Bank2017-06-162017-06-162011-06https://hdl.handle.net/10986/27252Russia has seen even higher oil windfall in the past few months, which translates into likely fiscal surpluses this year and next. The government should not miss the opportunity provided by a large oil windfall to substantially improve its long-term fiscal position, further reduce inflation, and, therefore, ensure a strong basis for durable stability and healthy growth in the future. Rising domestic demand and credit activity are increasingly supporting solid growth. Overall, labor market conditions improved recently while poverty was broadly flat during and after the crisis, but unemployment and poverty in many regions remain difficult. Further reductions in poverty will require greater policy focus and persistence in implementing more effective and targeted programs, especially in the poorest regions. Two new special-topic analyses focus on export diversification in Russia, and food and energy inflation in Europe and Central Asia region. In the first, results show that productivity is the key to exports and that lack of competition and entrepreneurial innovation are relevant obstacles to the emergence of new, potentially exportable products. In the second, it is shown that food and energy prices in Russia and other countries in Europe and Central Asia are contributing significantly to consumer price inflation, complicating anti-inflation policy and poverty reduction.en-USCC BY 3.0 IGOACCOUNTINGADVERSE EFFECTAGRICULTURAL PRODUCTIONAGRICULTUREARABLE LANDAVERAGE PRICEBALANCE OF PAYMENTSBALANCE SHEETSBANK LENDINGBANK POLICYBANKING SECTORBANKING SYSTEMBASIS POINTSBINDING CONSTRAINTSBORROWING CAPACITYBUSINESS CYCLECAPACITY CONSTRAINTSCAPITAL ACCOUNTCAPITAL FLOWSCAPITAL INFLOWSCAPITAL INVESTMENTCAPITAL OUTFLOWSCARTELCENTRAL BANKCLIMATIC CONDITIONSCOLLATERALCOMMERCIALIZATIONCOMMODITYCOMMODITY PRICECOMMODITY PRICESCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITION POLICYCONSUMER PRICECONSUMER PRICE INDEXCONSUMER PRICE INFLATIONCONSUMER PRICESCONSUMERSCPICREDIT DEFAULTCREDIT DEFAULT SWAPCREDIT DEFAULT SWAPSCREDIT GROWTHCREDIT RISKCURRENCY BASKETCURRENCY RISKCURRENT ACCOUNT BALANCECURRENT ACCOUNT BALANCESCURRENT ACCOUNT DEFICITDEBTDEBT REPAYMENTSDEFICITSDEMAND GROWTHDEPOSITDEPOSITSDEVELOPING COUNTRIESDISPOSABLE INCOMEDIVISION OF LABORDOMESTIC MARKETDOMESTIC MARKETSDURABLEECONOMIC ACTIVITYECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC SECTORSEMERGING MARKETSEMISSIONSENERGY CONSUMPTIONENERGY EFFICIENCYENERGY PRICEENERGY PRICESENTERPRISE PERFORMANCEEXCHANGE RATEEXCHANGE RATESEXPENDITUREEXPORT COMPETITIVENESSEXPORT GROWTHEXPORT PERFORMANCEEXPORTERSEXPORTSEXPOSUREEXPOSURESEXTERNAL DEBTEXTERNAL DEFICITSEXTERNAL FINANCINGEXTERNALITIESFEDERAL BUDGETFEDERAL BUDGET DEFICITFINANCIAL CRISISFINANCIAL SERVICESFISCAL CONSOLIDATIONFISCAL DEFICITFISCAL POLICYFIXED CAPITALFIXED INCOMESFLEXIBLE EXCHANGE RATESFOREIGN ASSETSFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN MARKETSFORESTRYGDPGDP DEFLATORGLOBAL ECONOMIC PROSPECTSGLOBAL MARKETGLOBAL MARKETSGLOBAL TRADEGOVERNMENT BUDGETGOVERNMENT INTERVENTIONSGRAY MARKETGROSS DOMESTIC PRODUCTHUMAN CAPITALINCOME GROWTHINCOME LEVELINDEBTED COUNTRIESINDEXATIONINFLATIONINFLATION RATESINFLATIONARY EXPECTATIONSINFLATIONARY PRESSUREINFLATIONARY PRESSURESINTELLECTUAL PROPERTYINTEREST RATEINTEREST RATESINVENTORIESINVENTORYINVESTINGINVESTMENT CLIMATEINVESTMENT STRATEGYLABOR COSTSLABOR MARKETLABOR PRODUCTIVITYLACK OF COMPETITIONLEGAL FRAMEWORKLEVEL PLAYING FIELDLIMITED LIABILITYLIQUIDITYLIQUIDITY POSITIONLOANLOAN RATESLOANS TO INDIVIDUALSLOCAL MARKETSLONG-TERM LOANSM2MACROECONOMIC INSTABILITYMACROECONOMIC RISKSMACROECONOMIC STABILITYMARKET ANALYSTSMARKET CONDITIONSMARKET DEVELOPMENTSMARKET FORCESMARKETPLACEMATURITYMATURITY STRUCTUREMONETARY AUTHORITIESMONETARY FUNDMONETARY POLICYMONEY MARKETMONEY MARKET RATESMONEY SUPPLYNEGATIVE SHOCKSNET CAPITALOILOIL PRICEOIL PRICESOPECOPEN MARKETSOUTPUTPATENTSPENSIONSPERMANENT INCOMEPOLICY MAKERSPOLICY RESPONSESPOLITICAL RISKSPOLITICAL UNCERTAINTYPRICE ADJUSTMENTSPRICE CHANGESPRICE CONTROLSPRICE FORECASTPRICE INCREASESPRICE VOLATILITYPRICING POLICIESPRIVATE BANKSPRIVATE CONSUMPTIONPRIVATE SECTOR DEBTPRODUCERSPRODUCT MARKETPRODUCTIVE INVESTMENTPRODUCTIVE INVESTMENTSPRODUCTIVITY GROWTHPROPERTY RIGHTSPUBLIC EXPENDITURESPURCHASINGPURCHASING POWERREAL GDPREAL INCOMEREAL WAGESREMITTANCESRESERVERESERVE REQUIREMENTSRESERVESRETAILRETAIL TRADERETURNRETURNSSAFETY NETSAFETY NETSSALESHAREHOLDERSSHORT-TERM BORROWINGSHORT-TERM CAPITALSHORT-TERM LIABILITIESSOVEREIGN DEBTSOVEREIGN DEBT PROBLEMSUNK COSTSSURPLUSSURPLUSESTARIFF BARRIERSTAXTAX REVENUESTOTAL DEBTTOTAL FACTOR PRODUCTIVITYTRADE BALANCETRADE LIBERALIZATIONTRADE OPPORTUNITIESTRADINGUNEMPLOYMENTUNEMPLOYMENT RATEVALUE ADDEDWAGESWHOLESALE TRADEWORLD ECONOMYReportWorld Bank10.1596/27252