VOA: Russian Economy Killers: Oil and Sanctions
NEW YORK CITY — Russian President Vladimir Putin gets a bad report card, even a failing grade, for his handling of the economic crisis in his country, according to 27 percent of analysts who participated in a major survey conducted by Bloomberg Business.
These are hard times in Russia, with the collapse in oil prices, economic sanctions against the country for its actions in Ukraine, the collapse of the ruble and significantly impaired economic growth.
Russia's growth started to decline rapidly in the first quarter of 2012, well before oil prices fell or economic sanctions took hold. The World Bank estimates that by 2017, Russia's GDP will be smaller than it was in 2012.
Russia's former finance minister, Alexei Kudrin, says he believes the economy is likely to decline in 2016, although he thinks growth is possible in 2017.
Update #1: Russian Economy to Grow by 1.3% in 2017 - World Bank (Sputnik)
Update #2: Video: A Gloomy New Year For Russian Economy (IBTimes)
Update #3: Russia's oil output hits record high despite price slump (i24 News)
WNU Editor: Let me put it this way .... everyone that I know in Russia is not expecting a pay raise this year.
5 comments:
WNU:
A handful of people that I know are not going to get a raise this year .
It looks like that we are heading for another recession .
What your take on this recent market semi crash.
2016 GDP growth 2016 from economy watch
Russia 1.5%
France 1.6%
Germany 1.8%
UK 2.4%
US 3%
world 4%
China 6.8%
India 6.5%
In general I like the Russians, I really do. I am a fan of their space program and have been following their military for several decades but I feel sorry for them. As far as I can tell, they have never had a government who has really cared for them. Constant aggression against their people and everyone around them, so as far as this article goes, the wages of sin equal to a crappy life. Until they get a government who really cares for them, Russia will always struggle. Such a pity.
Si-vis-pasen-
For U.S. stocks .... the price-earnings ratio is about 16:1
For Chinese stocks, it is about 61:1
Chinese stocks are WAAAAYYYYY over-valued. The bottom has not even been reached for the Chinese
But the impact on us (i.e. the West) will be on interest rates going up, and debt. Governments will go in a panic .... they will raise taxes and cut services. More taxes means less economic activity .... deeper debt and deeper problems. The solution will be to cut government growth, and to balance the books. But at the moment there is not major government in the Western world that is interested in pursuing such a policy.
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