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 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.

Bibliographic Details

Main Authors:	Hansl, Birgit, Cosic, Damir, Emelyanova, Olga, Kida, Mizuho, Matytsin, Mikhail, Vashakmadze, Ekaterine
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014-08-11
Subjects:	ACCOUNT DEFICIT, BALANCE OF PAYMENTS, BANK LENDING, BANKS, BASIS POINTS, BOND, BOND ISSUANCE, BORROWING COSTS, BUDGET SURPLUS, BUSINESS CONFIDENCE, CAPITAL FLOWS, CAPITAL OUTFLOWS, CAPITALIZATION, CDS, CENTRAL BANK, CONSUMER DEMAND, CONSUMER PRICES, CREDIT DEFAULT, CREDIT DEFAULT SWAPS, CREDIT FLOWS, CREDIT GROWTH, CURRENCY, CURRENCY BASKET, CURRENCY SWAPS, CURRENT ACCOUNT, DEPOSITORS, DEPOSITS, DEPRECIATION, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DOMESTIC DEMAND, DUAL CURRENCY, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC GROWTH, EMERGING MARKET, EMERGING MARKET BONDS, EMPLOYMENT, ENERGY EXPORTS, EQUIPMENT, EQUITY FLOWS, EQUITY ISSUANCE, EUROPEAN CENTRAL BANK, EXCHANGE RATE, EXCHANGE RATE DYNAMICS, EXPENDITURE, EXPENDITURES, EXTERNAL FINANCING, FEDERAL BUDGET, FIXED INVESTMENT, FOOD PRICES, FOREIGN DIRECT INVESTORS, FOREIGN EXCHANGE, GEOPOLITICAL TENSION, GEOPOLITICAL TENSIONS, GLOBAL ECONOMY, GROWTH RATES, IMPORTS, INCOME, INCOME GROWTH, INCOMES, INDEBTEDNESS, INFLATION, INFLATION EXPECTATIONS, INFLATION RISK, INFLATION RISKS, INFLATION TARGET, INFLATIONARY PRESSURE, INFLATIONARY PRESSURES, INTERNATIONAL RESERVES, INVENTORIES, INVESTMENT DEMAND, MATURITY, NET CAPITAL, NON-PERFORMING LOANS, OIL PRICES, OUTPUT, OUTSTANDING CREDIT, PAYMENT DEFAULT, PENSION, PENSION FUND, PENSION FUNDS, PORTFOLIO, PRIVATE PENSION, PROFIT MARGINS, REAL GROWTH RATES, REAL SECTOR, REGULATOR, RESERVES, RETAIL, RETAIL TRADE, SALES, SLOWDOWN, SOVEREIGN BONDS, SWAPS, TARIFF POLICY, TAX, UNEMPLOYMENT RATE, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2014/08/20148092/russian-federation-monthly-economic-developments https://hdl.handle.net/10986/19972
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