According to the internationally renowned credit rating agency Standard & Poors (S&P), estimates for the growth of Russia's economy have lowered and the country will spend a second year in recession. S&P suggested that Russia's 2016 economic growth estimation has decreased from 0.3 percent to -1.3 percent, while this rate is expected to decrease from 1.8 percent to 1 percent for 2017.
Recalling a 3.7 percent shrinkage in Russia's economy last year, S&P stressed that the country's economy is expected to continue its shrinkage this year as well, and it will spend its second year in recession. "The macro-economic table we have updated for Russia reflects our considerable downside revision regarding the commodity prices. Our previous estimation in September 2015 regarding the Brent crude oil price at $55 is now expected to decrease to $40."
S&P also indicated that the same estimation also indicates a decrease from $60 to $45 for 2017. Highlighting the fact that import levels are also expected to decrease for the next period along with the decrease in domestic demand, S&P stressed that Russia's export level will be significantly lower due to low global demand.
Keep up to date with what’s happening in Turkey,
it’s region and the world.
You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.