IMF Cuts Russia Growth Forecast

The International Monetary Fund has slashed its growth forecast for Russia and warned of wider economic fallout if the Ukraine crisis escalates.
Russia’s oil-rich economy will grow by 1.3% in 2014, according to the IMF. That compares with its January forecast of 1.9%.

Other forecasters, including the World Bank and some in the Russian government, expect a much weaker outcome due to a flight of capital and an emergency interest rate hike aimed at drawing the inflationary sting of a sharp devaluation of the ruble.
The currency is down 8% against the dollar so far this year, and Russia’s main stock exchange index has fallen more than 10%.

via CNN

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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