IMPACT OF EXTERNAL BORROWINGS ON THE RUSSIAN ECONOMY

Abstract

External debt is the most important factor of impact on the country's economy. In the Russian Federation it is divided into public and private, which determines the borrower of foreign liabilities. At the same time, the total volume of foreign debt affects the stability of the country's economy and indicators of its activity. Thus, the stabilization of Russia's external debt after 2015 led to a 1% decrease in the unemployment rate in 2019, and the GDP growth rate became positive. However, due to bureaucratic reasons, the country's aggregate capital is slower to respond to the stabilization of external borrowings, and therefore only in 2018 total Russian revenues exceeded total expenditures. This is why it is so important to study the structure of external debt, determine its relationship with economic indicators, and implement timely reforms of the country's economic policy in order to avoid the negative consequences that high levels of debt on foreign loans can entail.