Russia to become Developed in Seven Years

Russia has been projected to become a developed country with low inflation, a sizable middle class, and much slower economic growth rates in just seven years according to a research report from Bank of America's Merrill Lynch.

Ironically the research argues that the country’s problems, such as a declining population, will become the catalysts for these changes and will actually drive the country to improvement in internal consumption.

“By the year 2020, Russia will turn into a developed country thanks mainly to its demographic problems,” the research by Vladimir Osakovsky of Bank of America Merrill Lynch suggests.

The Russian Ministry of Economic Development also supported this concept, Finmarket.ru reports. Economists believe that scarce human resources will force employers to compete for qualified workers. Hence higher salaries will boost internal consumption.

Experts of the Organisation for Economic Co-operation and Development however have disagreed with such a notion.