The 5th in our series of guest posts on the outlook for 2014 is by Chris Weafer of Macro-Advisory
In economic terms 2013 was Russia’s Annus Horribilis. From growth of 3.4 per cent in 2012, and early expectations of a repeat performance this year, the economy is much more likely to report growth of only 1.3 per cent. That is still a good number in global terms but a long way off the 4 to 5 per cent growth that the country actually needs. A second consecutive year of poor growth will feel like stagnation and lead to a raft of earnings forecast downgrades in companies exposed to the domestic economy.
The good news is that the President and his Kremlin advisors are finally starting to pay attention. Read more