Tuesday 16 December 2014

Russia's fast track to ruin

Russia
Here are the numbers that explain why the Russian economy is imploding in the face of a tumbling oil price and Western sanctions.
Oil and gas energy represents two thirds of exports of around $530bn (£339bn). Without them, Russia would have a massive deficit on its trade and financial dealings with the rest of the world - which is why Russia's central bank expects a capital outflow of well over $100bn this year and next.
And public expenditure is almost completely supported by energy-related revenues. In their absence, the government would be increasing its indebtedness by more than 10% a year, according to IMF data.
So the massive and unsustainable non-oil deficits in the public sector and trade explain why investors don't want to touch the rouble with even the longest barge pole.http://www.bbc.com/news/business-30491170

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