Russian Federation Monthly Economic Developments
Second quarter gross domestic product (GDP) estimates and high-frequency indicators suggest continued weakness in the economy even before the latest round of economic sanctions introduced by the European Union (EU), the United States (U.S.), and ot...
| Main Authors: | , , , , , |
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| Format: | Economic Updates and Modeling |
| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/08/20148092/russian-federation-monthly-economic-developments http://hdl.handle.net/10986/19972 |
| Summary: | Second quarter gross domestic product
(GDP) estimates and high-frequency indicators suggest
continued weakness in the economy even before the latest
round of economic sanctions introduced by the European Union
(EU), the United States (U.S.), and other countries in late
July. The World Bank maintains its current 0.5 percent
growth projection for 2014. Inflation slowed in July, but
the wide-ranging ban on food imports the Russian authorities
introduced in early August will likely increase short-term
inflationary pressure and put the Central Bank s 2014
inflation target further out of reach. Pressure on the Ruble
resumed on the back of escalating geopolitical tension and
advanced sanctions. The continued slowdown in Russia comes
amid a sharp rebound in economic growth in the U.S. in the
second quarter and a modest pickup in activity in China,
while external financing conditions for developing countries
remain favorable, reflecting continued accommodative
policies in high-income economies. Global oil prices
reversed their course in July as geopolitical risks
emanating out of Iraq abated, but the ban of EU exports of
oil drilling technology to Russia can drive up prices again. |
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