Friday, September 2, 2016

Russian President Putin: 'No Need To Borrow Money'

Reuters: Putin pledges fiscal rigor to preserve financial independence

President Vladimir Putin said on Friday decisions on federal spending would be taken "very carefully" in order not to undermine Russia's financial independence.

The low global price of oil, Russia's main export, reduced investments due to Western sanctions and a broad global economic downturn have pushed the Russian economy into its second year of recession and have made a significant dent in state revenues.

Gross domestic product contraction this year will be slightly worse than earlier assumed, at between minus 0.5 percent and minus 0.6 percent, Economy Minister Alexei Ulyukayev said on Friday.

Read more ....

Update: Putin Says Russia’s Self-Sufficiency Lets It Skip Bond Dash (Bloomberg)

WNU Editor: Sanctions. Oil price crash. Inflation. But even though the economy is stagnant .... people are working, and the general mood is that things will get better in the next year or two. What's my take .... when I was in Russia two weeks ago I saw a lot of construction cranes in Moscow and in my mother's hometown of Vyazma.

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