After a sharp decline in GDP in 2015, which occurred in the background of the fall in the cost of oil and gas, the Russian economy in 2016 slowed its decline, and during 2017, its recovery growth was already observed.

The recovery of the Russian economy was supported by an increase in prices for major export goods, as well as the modification of the country’s payment balance to new conditions. By the end of 2016, the country’s GDP fell by 0.2% and has grown by 2,1% in 2017.

At the same time, the situation of key economic indicators is improving. In particular, the industrial production and wages are growing. As the situation on the commodity markets stabilizes and the country further adapts to external conditions, the Russian economy will continue to recover.

However, without creating circumstances to stimulate investment demand and develop its own production with high added value, it will be difficult to achieve growth rates that exceed the world average. And it is necessary to take into account the risks of increasing the sanctions pressure on the economy, including the introduction of a ban on the purchase of public debt.

In 2017 there was a record slowdown in inflation by 3%. Nonetheless, the increase in the tax burden has affected the growth in the share of mandatory payments and contributions in the structure of the population’s expenditures, which led to a drop in income of the country’s residents.

In 2016, the government set a strategic goal to increase the pace of housing construction: the volume of housing commissioning by 2020 should be increased to 100 million square meters from the current level of 80 million sq.m. in St. Petersburg. The new houses are less expensive and as the consequence, the average price of real estate is decreasing.

However, the cancellation of the mechanism of equity financing of construction increases the volume of a residential real estate in the coming years. In addition, representatives of the Ministry of construction underline the great need for investing resources in the building industry and the long payback period. As the result, the pace of new construction will slow down.