Consumer credit, a powerful tool in supporting demand, is also down, he said.
On the corporate side, Belousov said, companies’ profits are shrinking by about 8-10% year on year, which is causing problems with investments.
He said, “More than 50% of our investment is from the company’s own funds. If profits decrease, it means investment will also decrease.”
The recent fall in the ruble may help in this regard. Belousov said the ruble strengthened this year due to capital controls and a drop in imports, but now that the company’s revenues are going down, a rate of 70-80 per dollar would be more beneficial.
Inflation is seen at 5-6% next year, but Belousov expects it to drop, which could allow the Bank of Russia to ease monetary policy and boost growth.