Reduced to rouble? An update on the Russian economy

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Series Details February 2015
Publication Date 24/02/2015
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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.

Source Link Link to Main Source http://www.cer.org.uk/insights/reduced-rouble-update-russian-economy
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