Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Wednesday, 19 June 21:09 (GMT -05:00)



Business And Politics News

Experts on Statements Made by Russian Officials about Russian Economic Recovery


International experts have commented on the recent statements made by several Russian officials about some economic recovery in Russia. They say that the weak economic growth isn’t backed by higher standards of living in the Russian Federation.

 

 

 

 

The mentioned officials claim that the Russian economy has entered a bullish cycle while the recent stats make allow them to hope for overcoming the economic crisis in the near future. However, Russian households still don’t see any improvement in their lives.

It seems like the Russian government does really believe in a better economic future for Russia. They seem to have stopped looking for the bottom for the Russian economic crisis and are now seeking any signs of growth instead. Such signs were found in the 4th quarter of 2016. Back then, they cut the living minimum by 2% all the way down to 9691 rubles. This meant that living in Russia had become cheaper back then. In other words, they claimed to have managed to stabilize the cost of the basic set of products and services, along with curbing inflation. On top of that, the 4th quarter of 2016 showed that he national economy had entered the green zone. According to Rosstat, Russia’s federal statistics office, the Russian GDP gained 0.3% over the reporting period as opposed to the previous one.

Maksim Oreshkin, who is current head of the Russian Ministry of Economy and Development, assumes that the Russian economy has now entered a new phase of growth. The minister claims that if to look at the stats or early 2017, we can see that the cargo transportation turnover has grown by 4-6%, electricity consumption has gained 2%, and so on. At the same time, the business activity index is now around multi-year high and has been there for quite a while.

emT1rjsl0GxQkujEDHC9KhSKdYi3nMSG.jpg

At the same, the ministry is going to revise the 2017 forecast. They say the forecast is going to be improved drastically – by 200% or so. However, even of this is the case, the GDP won’t get an increase over 2%. However, most of the high-ranking officials in the economic and financial sector assume that if the Russian economy and financial system sees structural reforms, it will fall into the so-called average income trap.

As for international experts, the don’t seem to share the optimism with the mentioned Russian officials. Some of them say that the new stage means a new growth model, which implies almost zero growth potential. This means that going back to growth in such an environment doesn’t actually carry any optimistic figures. At the same time, other experts think that the national economy in a new growth paradigm should rest upon leverage without budget support.

However, this is not confirmed by the latest economic stats. The thing is, that the federal budget spending has been growing at an increased pace since early 2017. Over the first 2 months of the year, it increased by 20%. The question is, how stable such growth will be.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

US-China Trade Conflict May Trigger Another Global Financial Crisis

Beijing and Washington are one step away from escalating their trade conflict. The confrontation may harm the entire global economy. Some experts belive that the trade war may also trigger another global financial crisis. At this point, the parties seem to have come to a standstill, which is why the chances of the conflict escalating into a move severe trade war are still growing.

Publication date: 18 June 10:18 AM

WTO Lowers Global Trade Growth Forecast

 WTO experts are reported to have revised their forecast for the pace of global trade growth. The renewed forecast names figures below the previous ones - 2,6% against 3,7%. It's also interesting to note that the previous forecast for 2018 failed to match the actual figures.

 
Publication date: 19 May 02:58 AM

How to Protect Investment Capital in 2019?

Existing political and economic risks are pushing international investors into thinking about the security of their investment capital. Chasing big profits becomes secondary to this kind of security.

Publication date: 31 March 11:26 AM

EU Comes Up With Workaround to US Sanctions

The representatives of Germany, France, and the UK have registered a company to let it trade with Iran despite the US sanctions. The company still needs to be approved by 28 EU members.

Publication date: 31 March 02:33 AM

Beijing and Washington are getting ready for the final talks

Publication date: 17 February 08:58 AM

US-China Trade War Reaches Next Level

Washington and Beijing have announced a new round of talks. International experts say that the trade war is indeed going to a whole new level.
Publication date: 08 January 10:17 AM

Roma May Drag Moscow and Brussels Into Major Financial Crisis

International experts are trying to evaluate the situation in Italy. Some of them are convinced that the EU is not going to save the Italian populists. For those of you who don't know the details, in October, the European Commission rejected the draft budget devised by the new Italian government. This means that the draft budget needs to be improved in order to approved.
Publication date: 19 December 11:48 AM

USA Strikes Iran Again

As you probably know, a couple of weeks ago, the United States imposed a new round of sanctions on Iran. International experts say that the package includes 700 new points, including an embargo on the import of crude oil from Iran. It's interesting to note that the sanctions will touch upon some other states as well. Some temporary exception are said to have been maid for 8 partners of the USA.
Publication date: 29 November 12:04 PM

Trump Offers Putin to Compete for Multi-Polar World, Eggert Says

According to Konstantin Eggert, a Russian journalist writing for Deutsche Welle, Donald Trump is offering his Vladimir Putin to compete for a multi-polar world, but on American terms. In particular, he highlights the fact that many international experts started panicking when finding out that the USA had withdrawn from the missile control treaty with Russia. They say that this is the end of the strategic partnership between the United States ans Russia and the disruption of the nuclear arms control system created decades ago.

Publication date: 29 November 11:07 AM

The world is on the verge of another global race

International experts are commenting on the events taking place over the last few years. In particular, President and CEO of Atlantic Council Frederik Kempe believes that we are nearing another race between the world's biggest superpowers.
Publication date: 07 November 09:02 AM