Russia: economy in tatters, or business as usual? | beyondbrics

Russia: economy in tatters, or business as usual? | beyondbrics:



"Much has been said over the last six months about the collapse of the Russian economy as a result of sanctions and the falling oil price, on top of other negative factors such as bureaucracy and corruption, high inflation, inefficiencies in production, ageing infrastructure, a failure to innovate and diversify and capital flight. A slew of economic data point to a deep recession, and US President Barack Obama describes Russia’s economy as being in tatters. No one seems to be denying the long-term negative impact on the economy; even the government expects two tough years ahead, a prediction regarded as hopelessly optimistic by many economists.



However, anecdotally at least, it doesn’t feel like a financial meltdown here in Russia.



There are no Venezuela-style food queues, or queues for foreign hard currency. Shopping centres in Moscow are buzzing with people buying western imported goods, supermarkets remain fully stocked (although the steak is now Argentinian and not Australian), new cafés and other outlets are popping up everywhere and the usual temporary wooden terraces are being constructed on pavements outside restaurants to catch the summer tourist trade (these tourists being mostly Russians from other parts of the country, as has always been the case). Roads are still gridlocked, public transport still packed and the airports are overrun with Russian sun-seekers flying off to Florida, Rome, Turkey and Thailand, along with those travelling to other cities in Russia to reunite with relatives and loved ones."



'via Blog this'