Substantial recovery still elusive for Russia economy

Substantial recovery still elusive for Russia economy:
"After more than two years of recession Elvira Nabiullina, Russia’s central bank governor, had good news to offer. Russia, which has struggled to get over a slump triggered by a sharp drop in oil prices and by western sanctions, was set for “slight positive growth in GDP” in the current quarter, she said on Friday.

With oil prices ticking up, and hopes that a US administration led by Donald Trump could bring at least some sanctions relief, some investors have taken the view that Russia’s recovery can gather steam. International funds are taking an interest in Russian stocks again, with the Micex, the main stock market index, soaring 27 per cent this year.

Inside Russia, though, expectations are far more muted. Most people have yet to feel any economic stabilisation. Real incomes continue to shrink. Inflation, although expected by the central bank to drop to under 5.8 per cent by the end of the year from more than 15 per cent last December, continues to eat into pensions and salaries. Consumers remain timid: retail sales fell 4.4 per cent in October, year on year."

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