In April 2013, slowdown of economic growth was determined by weakening of the dynamics of investment demand.
Comments
Growth in Households’ Loan Debt to Banks Slowed Down
31 may 2013
On the basis of the results of April 2013, annual growth rates of households' loan debt to banks fell to 36%. Growth in unsecured loans slowed down a great deal from the peak value of over 60% in summer 2012 to 47% in the 1st quarter of 2013.
Russia has no labor force deficit
29 may 2013
There is a wide-spread point of view among experts that Russia is facing labor force deficit. In particular, Sergei Aleksashenko, Director of Macroeconomic Research at Higher School of Economics, National Research University, expressed such a view in his interview to Ekho Moskvy (Echo of Moscow) radio station on May 22. According to Aleksashenko, Russia should employ migrant labor on a large scale.
No risk control whatsoever in the consumer financing market
28 may 2013
Credit pumping as part of the growth model and institutional environment which have been established in Russia, will lead to a short-term revival of the economy, escalation of structural problems, and a crisis which would cost much more than the crisis of 2008-2009.
Russian economy is still under the threat of a recession
28 may 2013
According to the Ministry of Economic Development and Trade of Russia, GDP grew up to 2.6% in annual terms in April 2013 against 2% in March in Russia, as stated Andrei Klepach, Deputy Minister of Economic Development, on May 27. GDP increased 1.8% year on year in January thru April in 2013.
Oil and gas revenues dropped 1.7 p.p. of GDP in January thru April 2013
27 may 2013
According to the Federal Treasury, federal budget revenues amounted to Rb 4223.4bn, or 20.9% of GDP in January thru April 2013, showing a decline of 2.2 p.p. of GDP year on year.
Only a New Model of Economic Growth Can Make it Possible for Russia’s Economy to Grow at a Higher Pace
24 may 2013
On 23 May, RF First Deputy Prime Minister Igor Shuvalov stated that he saw no reasons for Russia's sovereign rating to be revised this year. He also said that ‘a recession so far has posed no threat to the Russian economy ... There is neither crisis nor recession; simply, given the current price of oil, the current rate of economic growth does not satisfy us'.
The Economic Amnesty Will Make a Difference for Ten Thousand People, At Best
23 may 2013
Last week, Boris Titov, the ombudsmen for the protection of business people's rights, submitted to the State Duma his initiative to free more than 111,000 entrepreneurs convicted of economic crimes. He suggested that the implementation of the initiative should coincide with Entrepreneur's Day on 26 May.
We Expect a Further Slowdown in the Growth Rate of Retail Crediting
23 may 2013
In the middle of last year, Russia's financial sector registered a record high growth rate of the amount of outstanding debt against loans granted to individuals.
The RF Ministry of Finance to Raise Its 2014 Budget Deficit Projection
22 may 2013
The RF Ministry of Finance is going to revise upwards its budget deficit projection for 2014 due to the expected loss of revenue in the amount of Rb 650 bn. In April, the RF Ministry of Economic Development downgraded its previous economic growth rate projection for Russia's economy in 2014 fr om 4.3% to 3.7%.
No Massive Rise in the Excise Duties for Euro-4 and Euro-5 Can Be Justified
20 may 2013
The RF Government has vetoed the RF Ministry of Finance's proposal that the excise duties for Euro-4 and Euro-5 standard gasoline should be massively increased in the next few years. If the proposal had been approved, three years from now the price of one liter of Euro-4 and Euro-5 gasoline would have been around 5 rubles higher than it is at present. The Government wants gasoline prices to increase at a much more moderate pace.
Low inflation should become a priority task for the Central Bank
16 may 2013
On May 15, the Bank of Russia made a decision to keep intact its refinancing rate and interest rates on liquidity-absorbing operations and short-term liquidity-providing operations.
Russian economy under a threat of deeper recession
15 may 2013
Experts of the Development Center under the Higher School of Economics have acknowledged the onset of technical recession for the Russian economy.
The Abolition of the 9% Tax Rate on Dividends Will Be a Wrong Decision
14 may 2013
In early April 2013, a new draft law was submitted for consideration by the State Duma Committee on Budget and Taxes. The draft law is designed to introduce changes in the current procedure for imposing tax on the dividends of individuals - tax residents of the Russian Federation, and on the dividends of Russian organizations. If the bill is passed into law, incomes (or profits) in the form of dividends will be taxed at a rate increased to 13%.
The Central Bank begins to publish its “Money Market Review”
08 may 2013
The Central Bank of Russia published the first issue of its "Money Market Review" on May 7. We believe that such a review will enhance transparency of the money market and the Bank of Russia monetary policy in general. According to the Central Bank's press release, the better informed are market participants of market structure and trends, the more adequate is their assessment of risks they are exposed to, above all, liquidity risk.
Five years of economic growth in Russia
30 april 2013
Comments to the "Harvest will prevent recession" article (Banki.ru, 30.04.2013).