Ukraine Uncertainty Depressing Growth and Investment | The Moscow Times - 5 views
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As world leaders increase or trash their political clout depending on their audience and the statements they make about the situation in the Ukraine, some analysts were revising Russian GDP growth estimates to as low as 1.1 percent for the year.
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Wednesday was a calmer day on the stock markets, following a dip of 10.8 percent Monday morning that vaporized near $60 billion of valuation from Russian companies.
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Although Russia has seen some short-term budget benefits from ruble devaluation and increasing oil prices, the current impasse is not helping to fight stagnation or attract investment.
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This article explains how the recent stand-off crisis in Ukraine is having a negative effect on the Russian economy, with the Rouble taking a further fall and GDP growth estimates being revised downwards. Predictably sanctions imposed by the west on Russia in response to the occupation of Crimea, an autonomous region of Ukraine populated largely by ethnic Russians, have affected businesses in Russia. We learn from the article that some $60 billion valuation has been lost by Russian companies in light of the tensions. This article relates to the macroeconomic concept of circular flow being a complex process with international trade and governments being involved majorly in proceedings.