By Andrei Skvarsky.
Russian investment bank Renaissance Capital argues that Russia is entering a time of “strong” and stable economic growth and has become a country with splendid investment opportunities.
“We expect growth in Russia to more than double to 2.6% YoY in 2020”, which “could surprise the markets”, RenCap economist Sofya Donets has said in a report.
“Russia is entering not only a good year, but also a fairly good period, we believe, when the accumulated buffers and gains of the long-standing ‘great stabilisation’ policy should translate into strong growth,” she said.
Donets presented the report, entitled “The orchestra plays a crescendo”, at a news briefing in Moscow last week, reiterating its main points .
She forecast 2.5 per cent growth for 2021.
This rebound after a rough few years will have been brought about by a combination of factors, according to Donets, who is one of RenCap’s economists for Russia and the Commonwealth of Independent States.
These include “consumption and investment growth”, “monetary and fiscal easing”, and the anticipated policy of the new Russian government that was unexpectedly put in office two weeks ago.
According to RenCap, Russia has become the best place in the Europe, Middle East and Africa (EMEA) region to invest.
There still are some uncertainties in Russia’s financial markets, however, Donets warned. The main source of uncertainty is a perceived risk of further Western sanctions against Russia, she said.
This was one of the points from her report that she raised at the briefing.
The day the briefing took place, January 29, evidence came that she had not been exaggerating – the Associated Press reported that the United States had imposed sanctions on a Moscow-based private railway company, Grand Service Express, that had opened a passenger service between Russia and Crimea in December.
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