IMF Staff Country Reports

This paper describes economic developments in the Russian Federation during 1995–96. It reviews trends in the domestic economy. It describes developments in the public finances, monetary policy, financial sector, and the external sector. The paper highlights that the output decline slowed to 4 percent in 1995, the smallest decline since the beginning of the transition. The decline accelerated to 6 percent in 1996, with lower investment—generally attributed to the uncertainty associated first with the presidential elections and subsequently with the President’s health being a major source of the decline.