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Home Economics

Russia’s economy will have difficulty

by Daniel Brown
2014/03/28
in Economics, HOME
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According to the World Bank ? became known that the Russian economy may face difficulties in the current and next year , in the event that the crisis caused by the annexation of the Crimea , will deteriorate . Analysts predict the company TeleTrade that it can exert pressure on the Russian ruble , which can devalue against most world currencies.

World Bank predicts two alternative scenarios. So , as a possible high and low risk of a negative scenario . The analysts of TeleTrade emphasize that the uncertainty about the Crimea in early March , which led to increased volatility in the markets , still continues to influence the mood of investors and speculators.

Thus, the low level of risk will mean short-lived , limited impact of the Crimean crisis , while economic growth will slow to 1.1 % in 2014 , to accelerate to 1.3% in 2015. A high level , in turn, will mean more severe economic turmoil in Russia. Investment activity in the country will also have problems if the geopolitical situation continues to deteriorate . In such a situation, the economy could shrink by 1.8 %, but will accelerate to 2.1% next year.

Analysts of TeleTrade remind that earlier projected growth of 2.2 % in 2014 and increase it to 2.7% in 2015. Recent events have undoubtedly continue to exert pressure on the Russian economy that can save room for further reduction of the Russian currency .

Tags: economyrubleRussia
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