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Tuesday, 27 June 07:41 (GMT -05:00)



Business And Politics News

Experts on Statements Made by Russian Officials about Russian Economic Recovery


International experts have commented on the recent statements made by several Russian officials about some economic recovery in Russia. They say that the weak economic growth isn’t backed by higher standards of living in the Russian Federation.

 

 

 

 

The mentioned officials claim that the Russian economy has entered a bullish cycle while the recent stats make allow them to hope for overcoming the economic crisis in the near future. However, Russian households still don’t see any improvement in their lives.

It seems like the Russian government does really believe in a better economic future for Russia. They seem to have stopped looking for the bottom for the Russian economic crisis and are now seeking any signs of growth instead. Such signs were found in the 4th quarter of 2016. Back then, they cut the living minimum by 2% all the way down to 9691 rubles. This meant that living in Russia had become cheaper back then. In other words, they claimed to have managed to stabilize the cost of the basic set of products and services, along with curbing inflation. On top of that, the 4th quarter of 2016 showed that he national economy had entered the green zone. According to Rosstat, Russia’s federal statistics office, the Russian GDP gained 0.3% over the reporting period as opposed to the previous one.

Maksim Oreshkin, who is current head of the Russian Ministry of Economy and Development, assumes that the Russian economy has now entered a new phase of growth. The minister claims that if to look at the stats or early 2017, we can see that the cargo transportation turnover has grown by 4-6%, electricity consumption has gained 2%, and so on. At the same time, the business activity index is now around multi-year high and has been there for quite a while.

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At the same, the ministry is going to revise the 2017 forecast. They say the forecast is going to be improved drastically – by 200% or so. However, even of this is the case, the GDP won’t get an increase over 2%. However, most of the high-ranking officials in the economic and financial sector assume that if the Russian economy and financial system sees structural reforms, it will fall into the so-called average income trap.

As for international experts, the don’t seem to share the optimism with the mentioned Russian officials. Some of them say that the new stage means a new growth model, which implies almost zero growth potential. This means that going back to growth in such an environment doesn’t actually carry any optimistic figures. At the same time, other experts think that the national economy in a new growth paradigm should rest upon leverage without budget support.

However, this is not confirmed by the latest economic stats. The thing is, that the federal budget spending has been growing at an increased pace since early 2017. Over the first 2 months of the year, it increased by 20%. The question is, how stable such growth will be.

 

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What’s New in New Anti-Russia Sanctions?

Today, the Russian political establishment and media are glad that the Senate of the U.S. Congress has recently postponed their voting on new sanctions against Russia. However, this is just the so-called “calm before the storm”, Western experts say.

 

 
The new sanction mechanism developed by the Senate is fundamentally different from the sanctions imposed on Russia previously, under Obama’s administration. The experts say that unlike Obama’s isolated decrees, the Senate has come up with a whole new mechanism taking into consideration the whole seriousness of Russia’s crimes in the global geopolitical arena. This mechanism will prevent the U.S. authorities from being able to cancel those sanctions gradually. So, the only way out will boil down to Russia leaving Donbass, the Crimea and Syria. So, this will be the only opportunity for Russia to see the Western world cancel those sanctions.
Publication date: 26 June 01:26 AM

Fed Raises Key Interest Rate. How Will This Affect Russian Economy?

The federal Reserve has raised the key interest rate by 0,25%. According to international experts, this may well make foreign assets (including Russian ones) less attractive in terms of investing.

 

 
The decision was made as the result of the recent 2-day FOMC meeting. The interest rate was raised up to 1-1,25%. At the same time, it’s interesting to note that the actual decision matched expectations, both from the international expert community and financial markets.
Publication date: 20 June 05:12 AM

Why Did British People Punish Theresa May During Parliamentary Election?

During the recent parliamentary election in the UK, the British Conservatives failed to gain public support required to get the absolute majority in the British parliament. Now, the international expert community is discussing the reasons why Theresa May failed on her expectations.

 

 
Publication date: 20 June 03:09 AM

Why Does Trump Fail to Be a Good President?

As you probably know, the scandal around Donald Trump’s decision to fire FBI Director Comey is just one of the unpleasant incidents in his presidential career started in early 2017.

 

 
The truth of the matter is, after the investigation against Michael Flynn started, Donald Trump asked FBI Director Comey to let the investigation slide. While Director Comey didn’t dare object to President Trump openly, he didn’t do that. On the contrary, the investigation got even more intensive.
Publication date: 16 June 01:46 AM

Trump Accuses Qatar Of Financing Terrorists

Donald Trump thinks that Qatar has been involved in sponsoring terrorists in the Middle East. That said, the USA joined other nations accusing Qatar of this kind of financing. President Trump thinks that it’s time to put an end to this. However, he didn’t specify what exactly Qatar did to sponsor terrorists.

 
Publication date: 15 June 05:35 AM

Trump Is a Boomerang Russians Have Hit Themselves With

Experts say that Donald Trump is gradually turning into a boomerang launched by Russia, and the thing is, this boomerang is going to hit Russia, thereby disappointing the Kremlin instead of letting them. President Trump is turning from Russia’s hope into Russia’s disappointment.
 

 

The Kremlin celebrated Trump’s victory with champagne while today Vladimir Putin says he didn’t expect anything from Donald Trump as the next president of the United States. He moved to the White House 5 months ago, but none of his decisions was made in favor of Russia.
Publication date: 13 June 06:25 AM

Will Macron Become Anti-Trump?

 New French President Emmanuel Macron seems to be getting more popular both in France and outside. The 39-year-old President of France seems to have challenged his 70-year-old American peer.

 

 
Not so long ago, he made his TV speech in English. While some older representatives of the French people were indignant at this move since no other president in the history of France had ever dare do so, but the French youth seemed to like this.
Publication date: 12 June 01:52 AM

Google Reveals Near-Term Forecast

Google Technical Director Ray Kurzweil has revealed his forecast for the period until 2030. Previously, he also made similar prediction for the near future related to IT. Strange as it may see, most of his predictions did really become a reality. That’s why the international community has been closely watching his predictions over the last few years, even though sometimes it’s very difficult to believe that the future will be the same as he described in his forecast.

Publication date: 10 June 11:54 PM

25th Amendment Threatens Trump with Impeachment

President Trump is reported to have found himself in another unpleasant situation. To be more specific, just for revealing some top-secret information to Russian Foreign Minister Lavrov, he is now threatened with a possible impeachment. They say that the 25 amendment to the American constitution, this becomes a very likely scenario. In particular, this assumption was put forward by an advisor who used to work for George Bush Jr.

 

 
Publication date: 07 June 12:25 AM

Chinese IT Innovations as an Example for the Resto of the World

China seems to have been trying hard to revolutionize the Internet and entire IT industry through innovation. The international expert community has been seriously discussing the possibility of China setting a good example for the rest of the world when it comes to innovation.
 
Publication date: 05 June 06:04 AM