According to Adviser on economy of the General Director of the Open Brokers Russian Company Sergei Khestanov, the annexed Crimea will not experience any economic advance in 2017 due to the big subvention part in the economy of the region.
“We must clearly understand the difference between the growth dynamics of the Russian economy and that one of the economy of Crimea that can be theoretically achieved simply by injecting from the Russian federal budget. The Russian federal budget is a deficit-plagued one; and the deficit is over 3%, so it will be difficult to find money. A 0.8% to -1% growth of the Russian economy is forecasted in 2016 and the next year’s one will be 0.5% by the buoyant hopes. So it is very problematic to invest in the growth of the economy of Crimea in such the circumstances,” said Khestanov.
On December 13 the Council of Ministers of Crimea approved the forecast of the socio-economic development of the region for the next three years. The document indicates that the local leadership hopes for the growth of the gross regional product. It is expected that the next year’s growth will be almost 5.5%, 9% in 2018 and a little bit more than 8% in 2019.