Russian Economy General News: #1

Austin wrote:GDP Growth is  2 % as per Finance Ministry assuming the next 2 quarters growth pick up.

3 % is not possible as the first two quarter it was 1.6 % and 1.2 %.

A gradual weakning of Rouble is desirable and export becomes more competitive and perhaps it may also boost domestic product appeal as Garry says , import will become expensive.

Hopefully Europe is out of its recession for good and its not just technical.

flamming_python wrote:But nonetheless it's the wrong move because it will harm trade and hurt the support base of pro-Russian politicians.
Russia should be trying to increase trade with the Ukraine as much as possible. If it achieves continues high trade growth and re-orientates the Ukraine's economic focus to itself and the CIS - then it would hardly matter whether the Ukraine has a free trade agreement with Europe or not.

flamming_python wrote:

Regular wrote:Russia is being classy, again playing like a "gent" and still some of You roll Your eyes why people pee their pants when someone says "Rasha".
But Khokhlandia - Isn't it too late to join EU? Like seriously, we already have troubled members in the south and now this excuse for a country comes in. What's next? Afghanistan?
Good luck while being pushed around by Brussels, EU constitution will have higher power over Your own, say good bye to Your work force. And I can only wonder how EU funds will improve life of their politicians

Russia is overreacting and adopting the wrong strategy.
I know the Ukrainians were forewarned that that bureaucratic barriers will be put in place for them just as they are for all other countries apart from a few with the privilege to export to Russia without paperwork (CIS and until now the Ukraine being one of them).

But nonetheless it's the wrong move because it will harm trade and hurt the support base of pro-Russian politicians.
Russia should be trying to increase trade with the Ukraine as much as possible. If it achieves continues high trade growth and re-orientates the Ukraine's economic focus to itself and the CIS - then it would hardly matter whether the Ukraine has a free trade agreement with Europe or not.

Regular wrote:So called EU improvement is nice on paper and in populist speeches. In fact EU members are more interested in exploiting new members, their workforce and market. For example in my country EU managed to destroy what was left of our agriculture and industry and they lowered quotas of what we should produce instead told us to import stuff from other members. EU has no interest in strengthening new countries.

Foreign investment into Russia in the first half of 2013 was $99 billion, a 32 percent rise from the same period a year ago, according to the State Statistics Service.

Of this, $12 billion was direct foreign investment, Prime reported.

However, Russian investment abroad increased by 80 percent to $126 billion, resulting in a net outflow of $27 billion during the period.

"As at June 30, 2013, there was $370 billion of accumulated foreign capital in the Russian economy, 11 percent more than at the end of the same period last year," the State Statistics Service said.

Russia's nominal GDP in the coming years will grow by half, and perhaps more, writes today, " RBC Daily ". The reason for the dramatic growth will be modified technique of calculation of GDP - is now used with the System of National Accounts (SNA) 1993. Statistics will move to the 2008 SNA.

As a result, the GDP calculation base will include new indicators: military assets, expenditure on research and development (R & D), conditional residential rents (the price that the apartment owner would receive for the surrender of its lease if it had not lived it himself).

"The new SNA requires that we recovered assets for military purposes and as part of the capital, and as part of working capital", - says the head of the Federal Service of State Statistics (Rosstat) Alexander Suriname. Under the new scheme of reusable objects (for example, the means of delivery of shells and bombs) should be included in the fixed assets and the bombs themselves - in working capital. "This means that we should all count, and this will lead to an increase in GDP," - said the head of service.

Threats to national security in connection with the disclosure of this information A.Surinov not see. According to him, the report will reflect a balance sheet, and all other countries, including the U.S. and China, too, it will open.

"We're not talking about a weapons system, how much of what purchase, this information will not be - only accounting figures. Issue of confidentiality is not worth it: aggregation, specific businesses will not be called," - said the head of the Federal State Statistics Service.

Regarding the inclusion of such a thing as a conditional residential rents, according A.Surinova, it can increase the nominal GDP by 7-9%. "Before, the International Monetary Fund (IMF) has reproached us that we do not take into account, we now fix it" - said the head of the Federal State Statistics Service. Will she and the calculation of inflation: consumer prices will rise in the share of housing costs.

How many exactly eventually grow GDP as a result of the transition to the new standard, A.Surinov difficult to answer, but he stressed that less than half as much. "Which of these innovations will affect the dynamics of the economy, do not know yet," - he added.

Austin wrote:Foreign Investment Rises 32 Percent, Net Outflow Remains

Foreign investment into Russia in the first half of 2013 was $99 billion, a 32 percent rise from the same period a year ago, according to the State Statistics Service.

Of this, $12 billion was direct foreign investment, Prime reported.

However, Russian investment abroad increased by 80 percent to $126 billion, resulting in a net outflow of $27 billion during the period.

"As at June 30, 2013, there was $370 billion of accumulated foreign capital in the Russian economy, 11 percent more than at the end of the same period last year," the State Statistics Service said.

NationalRus wrote:total keynesian bullshit and nummber circus, means literly nothing, jesus christ i cant facepalm hard enough reading this bullshit  

just like USA changed the calculations for the CPI to hide inflation after the 70's just becouse you calculate it diffrent doesnt mean it isn't ther, or in our case now that it is ther

sepheronx wrote:Anyway, investments abroad could very well mean projects abroad, like development of Russian industries in other countries, or building energy facilities in other countries (Africa is one continent growing with Russian investments).