World bank gloom on Russian economy as OECD looks for sharp rebound
Published: 25 June, 2009, 10:46
Edited: 02 October, 2009, 07:00
TAGS: Investment, Russia and the global economy, Economy, Finance
The economic crisis is changing the structure of Russia's population, boosting the number of poor and cutting the middle class. It's part of the World Bank’s forecast for this year - and it just got more gloomy.
One fifth of the population is poor, Unemployment hitting 13%.
The World Bank has lowered its outlook for Russia, saying the economy will contract 7.9 % and the recovery may take three years.
Or even longer, according to Zhelko Bogetich, The World Bank’s Chief economist for Russia.
“The challenge is for all countries to resist the temptation towards the quick fixes of raising tariffs, to put trade barriers towards – that would result in retaliation and decline in trade flows and that alone will affect economic recovery that is already fairly weak.”
But there was a ray of hope from the Organization for Economic Cooperation and Development. It says – the recovery will be sharp.
The group of the world's rich economies, said on Wednesday the deepest global recession in 60 years is nearing its bottom, but the recovery is likely to be "weak and fragile," with its member- economies expected to grow by less than 1% in 2010.
But its Russian outlook is more optimistic – 3.7% growth next year, a sharp decline followed by a sharp recovery.
25.06.2009, 10:37
PM’s supermarket visit puts spotlight on rising pricesThe state may soon control retail prices in Russia. A new legislation on retail business in Russia is to take its final shape in 10 days. |
25.06.2009, 10:51
Economic crisis will not end soonIn an exclusive interview with RT's Anastasia Churkina, Russia's Finance Minister Aleksey Kudrin speaks about the global economic crisis – how the world got here, and what will happen next. |
Offcourse will be sharp recovery , but for them how organized this crisis , not for us!For us will remain the same painful life as subjects of that organized criminal activities ! That will be great robbery recovery( sharp ! do you!)
So they say were are doing terrible, then say we shouldn't protect ourselves and go down with the sinking ship. Russia has everything it needs within its borders and can trade with trade partners. And I don't believe everything I read about this Crisis in Russia. Yes there is a economic downturn. However, a lot of corruption is the cause. Remember how Putin reopened a factory in one day. Then everytime I go to a store, I see nothing but people shopping and buying nonsense and comfort items. World Bank is the head of an agenda.
The Russian people are suffering just like the American people from this economic mess. I don't think any of us should get overly optimistic about the world financial situation. While some have made billions off of the bubble, others have lost almost everything including their jobs, their houses and retirements. All we can do is weather these bad times out and work for a better future.