Russia Withstands Economic Malaise As Putin Ratings Rise

The West has made a huge bet on Ukraine’s political stability, despite massive uncertainty and corruption.

What about Russia? In 2012, Russian GDP growth was still 3.4 percent, but it more than halved to 1.3 percent last year. In May, Putin’s approval rating still soared to 83 percent, a six-year high. But the real question is how long Putin can sustain his strong domestic support amid a severe sanctions scenario.

Moscow’s impending contraction would penalize growth by 0.8 percent, while capital outflows could climb to more than $100 billion. If inflation will exceed 8 percent in 2014, new rate hikes will deepen economic pain.

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