Sunday, May 6, 2018

How Is The Russian Economy Doing?

Russian President Vladimir Putin speaks during a meeting with supporters at his campaign headquarters in Moscow, Russia March 18, 2018. Yuri Kadobnov, Reuters

CNBC: Amid international pressure, Russia’s economy is a mix of the good, the bad and the ugly

* Russia's economy is projected to grow by less than 2 percent this year, but has rebounded from a deep 2015-2016 contraction
* Investors say resurgent oil prices are bolstering the economy despite Moscow being squeezed by sanctions
* All said, parking money in Russia is definitely "risky," analysts tell CNBC.

Beset by tough sanctions and worldwide political isolation, a casual observer might be surprised to learn that Russia's economy isn't doing all that badly – even if it still has a litany of problems.

In fact, some investors are fairly bullish on the country, where the outlook is bolstered by surging oil prices. However, there are red flags everywhere, including a new round of sanctions against Russian companies and oligarchs aimed at pressuring President Vladimir Putin.

For the moment, 2018 will mark another year of recovery for the Russian economy after a steep recession triggered by oil's swoon during 2014. Russia's growth is expected to reach 1.7 percent this year, according to a World Bank forecast, largely in line with growth last year but well above the near 3 percent contraction the country saw from 2015-2016.

Read more ....

WNU Editor: What has saved the Russian economy (and Putin's political fortunes) is the growth of small businesses, low taxes, and low unemployment.

2 comments:

jac said...

That's exactly which is strange in Russia: close to dictatorship with very pro business rules. Well, it will takes time for Russia to become a Democracy, but many rules are here and we have to understand it had take 2 centuries for America for becoming a Democracy. We can give a little bit more time than now for Russia for reaching this goal.

jimbrown said...

Putin has created his own problems. Unfortunately Trump's hande are tied from improving relations.