20150105 Russias economic turmoil

“Russia’s Economic Turmoil” by Torbjörn Becker

Is Russian economy into a sudden stop or is it just a slippery oil slope to stagnation? Can the Russian economy withstand the combined effect of falling oil prices and massive capital outflows while preserving some growth or is the economy heading for a sudden stop scenario with falling GDP? These and other questions have been investigated in the latest BSR policy brief written by Torbjörn Becker, Director of SITE.

The policy brief analyses key factors behind the sharp depreciation and volatility of the rouble and associated economic challenges in Russia’s economy. Various topics including recent forecasts of Russian growth, implications for income levels, imports, growth and capital flows and the price of oil and its impact on Russia’s GPD are investigated throughout the article.

“The question is then how Russia can avoid a full blown sudden stop scenario with accelerating capital outflows, shrinking imports and a collapse in growth. What policies can be implement to generate growth in the economy in 2015?”, questions Torbjörn Becker.

The policy brief also provides insights about the reforms needed in Russia’s economy to rebuild international financial confidence and trade ties. Read more about conclusions and solutions proposed in the policy brief “A Russian Sudden Stop or Just a Slippery Oil Slope to Stagnation?”.