Falling oil prices and Western sanctions have forced the Russian authorities to seek ways to reduce external debt and gave a powerful impetus to reforms in the country. This reformatting should seriously strengthen Russia’s economy, says Director of markets of BCS Global Markets Yossi Dayan.
photo: Alexander Astafyev
In an interview with The Telegraph, the expert said that the Kremlin’s reaction to the crisis has shown that the authorities have taken into account past mistakes.
“The fact that Russia is currently adjusting to a radically altered landscape says about the future successes that await the country if it uses the window of opportunity”, he said.
Diane predicted growth of Russia’s GDP by 0.4% this year, whereas a year growth could reach 1.9 percent. The expert praised the actions of the Central Bank, which in 2014 has let the ruble float freely.
In the result, the national currency took the brunt of the crisis, however, the sharp fall of the ruble is expected to strengthen trade balance: last year it amounted to 143.9 billion dollars, is expected in the current $ 148 billion, and the next — 173,1 billion.
The lack of support of the ruble led to higher prices, but the inflation rate went into decline. In 2016 it is expected that the price growth of seven per cent, and in 2017 will drop to 6.1 percent.
Diane also noted the decision of the Central Bank, associated with the capital market. The result strengthened the Moscow exchange, became a tool MIRV level for the financial system of the Russian Federation. This is evidenced by the net profit of the financial sector: if in 2014 it dropped by 1.6 percent from the level in 2008, in 2015 it rose by 660 percent.
The effort was welcomed by investors. Capital outflow from the country fell sharply, and the Russian stock market took the palm of his performance among developing countries.
Positive role to play in the upcoming privatization of monopolies in the public sector, the first wave which is to be held this year.
Recently a similar view was expressed by the experts surveyed by Bloomberg. They noted that the decline in oil prices has spurred the development of other sectors of Russia’s economy, including agriculture and the food industry.
Read the material MK: “the OECD predicted a sharp drop in the Russian economy”
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