Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS

IMF Finds Russian Economy Recessive
May 1, 2014 22:30


International Monetary Fund (IMF) believes the Russian economy is recessive, as it shows a decrease the second quarter in a row.

The fund changed the forecast for Russian economic growth in the current year and in 2015 down to 0.2% and 1% respectively. The same IMF forecast in April, 2014 was 1.3% for 2014 and 2.3% for 2015. This was told by Councilor of the European Department of IMF Antonio Spilimbergo at the press conference.

In addition, the IMF predicts that the Russian federal budget surplus for the current year will be at the level of 0.34% of GDP. IMF also welcomes the decision of the Russian Central Bank to raise key interest rate up to 7.5%, but doubts the sufficiency of this measure. Spilimbergo said about the need of tightening monetary policy as a further measure to reduce inflation. The Fund expects in Russia more than 6% inflation in 2014.

Capital outflow in the current year is forecasted at $100 billion. Spilimbergo believes that this year investments will also continue dropping.

According to the IMF representative, the geopolitical environment in Russia affects the size of banks' profits. "The system is experiencing pressure associated with uncertainty due to geopolitical environment as well. In addition, growth deceleration  happens there and this will affect both, profitability and quality of the banks," Spilimbergo said.


Author: Anna Dorozhkina

Tags: International Monetary Fund Russian Economy    

Next Previous

You might also find interesting:

Russia will Reach a Peak of Oil Production in 2021 Fastfood business in Russia Power of Siberia Gas Pipeline Project Anapa Will Host Open Film Festival Of CIS and Baltic Countries Joint Russian-Israeli Commission

comments powered by Disqus

Comment on our site

RSS   twitter   facebook   submit

Bookmark and Share

Flowers Delivery

search on the map
Novosibirsk  Altai  Moscow-Petersburg highway  Lazar Gadayev  IPO  Russian Internet Week 2012  Archeology  Graphic Art  contract  Painting  Mashina Vremeni  Russian Screenwriters  Magnitsky Act  crisis  Adobe  music  Far North   Moscow Architecture  Moscow events  Mercedes-Benz Fashion Week Russia  Bankruptcy  Zoya Kosmodemyanskaya  Russian Cinema  eBay  Russian tourism  US sanctions  Russian hackers  New Medicines  St. Petersburg  Megafon  Flying Saucer  oil  Russian painters  ArtExpoSpb  Russian history  Manor Tourism  red caviar  Film Festival "Eurasian Bridge"   technology  Tula Region  Moscow  Kaliningrad Region  Chernye Zemli  Russian business  Exhibitions in Moscow  human rights in Russia  Yekaterinburg sightseeing  Russian Poets  Russian Literature  Moscow attractions 

Travel Blogs
Top Traveling Sites