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How sound is Russia's economic growth?
An important factor in Russia's economic growth last year was the unprecedented scale of investment. According to official statistics, the increase in investment in fixed assets hit a six-year high of 13.5% against 10.7% in 2005. The government views the rise as a sign of a healthy economy. Yet the country's stagnating industry makes talk of sound economic growth seem premature.
The fact that investment grew almost twice as fast as gross domestic product (up 6.7%) is really a positive......
