Post by Fletchsmile on Aug 11, 2015 22:20:20 GMT 7
More trouble in/ from Emerging markets - Russia this time. As said before though, for the patient prepared and able to ride the roller coaster and risks at some point we'll probably look back and see Russia now as cheap. The big question is when...
============================================
Russian Recession Finds No Bottom as Economic Skid Worsens
How low can it go?
Russia, which Moody’s Analytics estimates entered a recession in the first quarter, may be in for a rough ride. Gross domestic product shrank 4.6 percent from a year earlier in the second quarter, the most since 2009, after a 2.2 percent slump in the previous three months, the Federal Statistics Service said on Monday, citing preliminary data. Capital Economics Ltd. sees a downturn that will trough with a 6.3 percent plunge in the third quarter, while HSBC Holdings Plc predicts this year’s worst performance from October to December.
A steeper drop would run counter to assertions by government officials that last quarter marked “the lowest point” for Russia, with growth set to resume late this year or at the start of 2016. What’s setting the economy back is a renewed slide in commodity prices that saw crude drop to a six-month low last week, hammering the ruble and shaking a country that relies on oil and gas for about half of its budget revenue.
“I don’t see anything turning up for Russia right now,” said Charles Movit, an economist at IHS Global Insight in Washington who predicts the country won’t have its first full year of positive growth until 2017.
contd.
www.bloomberg.com/news/articles/2015-08-10/russian-recession-finds-no-bottom-as-economic-skid-picks-up-pace
============================================
Russian Recession Finds No Bottom as Economic Skid Worsens
How low can it go?
Russia, which Moody’s Analytics estimates entered a recession in the first quarter, may be in for a rough ride. Gross domestic product shrank 4.6 percent from a year earlier in the second quarter, the most since 2009, after a 2.2 percent slump in the previous three months, the Federal Statistics Service said on Monday, citing preliminary data. Capital Economics Ltd. sees a downturn that will trough with a 6.3 percent plunge in the third quarter, while HSBC Holdings Plc predicts this year’s worst performance from October to December.
A steeper drop would run counter to assertions by government officials that last quarter marked “the lowest point” for Russia, with growth set to resume late this year or at the start of 2016. What’s setting the economy back is a renewed slide in commodity prices that saw crude drop to a six-month low last week, hammering the ruble and shaking a country that relies on oil and gas for about half of its budget revenue.
“I don’t see anything turning up for Russia right now,” said Charles Movit, an economist at IHS Global Insight in Washington who predicts the country won’t have its first full year of positive growth until 2017.
contd.
www.bloomberg.com/news/articles/2015-08-10/russian-recession-finds-no-bottom-as-economic-skid-picks-up-pace
