Thursday 3 July 2014

HSBC: Russia enters technical recession, as Ukraine’s drag weighs — RT Business

HSBC: Russia enters technical recession, as Ukraine’s drag weighs — RT Business:



"Russia has slipped into a technical recession, as the growth has been negative for the past two consecutive quarters, and stagflation could be on the horizon, a new HSBC report reveals. Political tension in neighboring Ukraine is being blamed.



“In June, the Russian economy showed zero growth, and slipped into a technical recession in the first half of 2014”, HSBC analyst Artem Biryukov commented in a Thursday note.



“Unfortunately, the recent spike in geopolitical tensions amid the Russia-Ukraine standoff will likely have long lasting negative effects on private fixed investment growth in Russia. This will hamper economic recovery in Russia in 2014-15, despite large investments further to the signing of the Russia Chinagas deal,” Biryukov said."



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