Author (Person) | Odendahl, Christian |
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Publisher | Centre for European Reform (CER) |
Series Title | Insight |
Series Details | February 2015 |
Publication Date | 24/02/2015 |
Content Type | Journal | Series | Blog |
Russia’s economy is in deep trouble. Although the oil price and the rouble have stabilised, the Russian economy will go through a long, deep and painful recession as high interest rates and poor access to finance hits investment, inflation erodes customers’ disposable incomes and the government tightens fiscal policy. A renewed fall in the oil price and the rouble would be likely to lead to a severe crisis, as Russia’s foreign reserves are dwindling, and renewed capital flight could lead to the imposition of capital controls. The problem is that a collapse and subsequent bailout of Russia is not in the interest of the West. |
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Source Link | Link to Main Source http://www.cer.org.uk/insights/reduced-rouble-update-russian-economy |
Countries / Regions | Russia |