Moody's Praised Change of Government and the Idea of Changing Constitution of Russia
“The domestic Russian political landscape is characterized by the growing consolidation of power around the president and his entourage. But it’s too early to judge what these changes mean for the balance of power in Russia”, the agency notes.
Moody's also appreciated the change in the Russian government. The agency, citing statements by Putin and Prime Minister Mikhail Mishustin, indicates that the new composition of the Cabinet as a whole will continue the policy of the previous one, aimed at improving economic growth and social indicators while maintaining macroeconomic stability. Moody's suggested that a change of government could occur due to slow progress in the implementation of national projects submitted by Putin in 2018.
The agency also believes that the social spending of the Russian authorities (in particular, the increase in maternal capital) creates moderate prospects for raising the forecast for the country's GDP growth, since such measures contribute to higher consumption. However, Moody's does not change its forecast for GDP for 2020 - 1.5% growth.