Russia

Helped by high oil prices, Russia will grow by 7.0% in 2004 and by 5.8% in 2005. However, the OECD says that growth will slacken unless the economy becomes less reliant on oil production. Reform of the state-dominated natural-gas industry is therefore an urgent priority. Continuing fiscal discipline is vital because the public finances are so vulnerable to a fall in oil prices. Greater security of property rights is essential if growth is to be sustained.