Following a difficult decade of economic decline, instability, and social hardship, the Russian economy has shown a remarkable resilience in recent years, surpassing even the most optimistic expectations in 1998-99. Significant economic growth during 1999-2001 has reversed years of decline, bringing Russian GDP in 2001 almost to the level officially recorded in 1993. In addition, the Russian government succeeded in eliminating the chronic budget deficits of the past, and the Central Bank has achieved an important degree of macroeconomic stability and credibility in monetary policy. While household incomes and living standards have lagged behind these developments, they have shown recent signs of growth. The banking sector has also been recovering from the 1998 crisis.