Russia Growth Was Questionable Even Before Crimea

Some 70 percent of the country’s exports are related to energy and mining, while Russia imports roughly 80 percent of manufactured goods, according to the latest figures from the World Trade Organization. About a third of those imports–everything from vehicles to computer equipment–come from Europe.

And with a relatively small manufacturing base, Russia’s economy is also highly vulnerable to canceled orders from U.S. and European customers. Some Russian companies are already feeling the chill of a drop in demand, according to Philip Uglow, chief economist at MNI, based on his firm’s survey this month of 200 large Russian companies.

“What we’ve heard from Russian companies this month is that they’re seeing a big fall in export orders,” he said. “Certainly their seeing some pain for the tension in Ukraine. They probably fear most trade or financial sanctions.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza