The debate amongst economists is just how bad the contraction is going to be this year - and while everyone agrees there will be a contraction, there is little consensus on how severe it will be.
Uralsib estimates Russia’s economy contracted 4.9% y/y in September versus 5.1% y/y in August. Russia’s Economy Ministry is more optimistic, estimating that GDP dropped just 3.8% y/y in September after falling 4.6% y/y in August. And clearly this year is going to be tougher than most were thinking in January following a raft of downgrades in the last weeks.BNE
MOSCOW BLOG: Has Russia's economy turned the corner?
Ben Aris in Moscow
1 comment:
Russian companies temporarily protected from international competition will ultimately ensure they can achieve economies of scale, then once sanctions are lifted they will have a chance of survival against German/Chinese mercantilism. Additionally they become more self sufficient which will make them less dependent on Europeans. Russians aren't as dumb as their western counterparts. As Russia tries to re-assert her hegemony around the globe, all the idiots in Western companies are rushing to get into the "cloud" (outsourcing) which creates a vulnerability, or a negative externality in economic terms that requires their data and communications to be secured by US Govt "tax-payers" and soldiers. The cost to society for the companies saving a small bit of money trying to use foreigners to provide their IT services and using foreign electricity without pollution controls and renewable mandates comes at a very high price for the rest of us. And Russia is practicing on how they would cut those communication lines. Good grief, American sheeple have to be the most stupid people on earth.
Post a Comment