03-22-2014, 05:43 AM
Economists have reacted to the turmoil in Russia and Ukraine in recent weeks by slashing their forecasts for economic growth in Russia. As chart 1 shows, consensus expectations for consumer price inflation this year are considerably higher than they were a few months ago, while expectations for GDP growth and the current account surplus are lower.
The Truth About Russia's Economy - Business Insider
There is already a short-term economic price, which can get significantly worse if the ruble keeps falling, exploding the foreign currency debt of Russian companies and/or other market turmoil.
The longer-term economic price could be much higher if:
- FDI into Russia is affected by the legal and international uncertainty
- Europe starts moving away from Russian gas