Hoover Daily Report
Analysis and Commentary
Analysis and Commentary

How Much Growth is Normal? In Russia? Elsewhere?

by Alvin Rabushka, Michael S. Bernstamvia russianeconomy.org
Wednesday, July 10, 2002

Russia's sustained contraction during 1991-1998, followed by a trend of declining growth during the past three-and-a-half years, should be set in the context of an economy defined by a low level of private income, about one-quarter of GDP (or a high degree of socialism, about three-quarters of GDP). In the realm of socialist economies, 3-4% annual growth may well be normal.