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Saturday, February 13, 2016

"Russia’s economic crisis is worse than Moscow admits" says Former Central Banker.

"Russia’s economic crisis is worse than Moscow admits" says Former Central Banker. (Rferl).

former deputy chairman of the Russian Central Bank has said Russia’s economic crisis is worse than Moscow admits and that the Kremlin’s optimism about future prospects "has not been based on reality."
Sergei Aleksashenko told RFE/RL on February 10 that "the Russian economy is not going to grow" in the near future "and the most likely scenario is stagnation in the medium term."

He said Russian authorities “have not acknowledged the real nature of the crisis, at least publicly” and the crisis “is not over, as the Kremlin claims.”

On the contrary,” he said, “the Russian economy is set to continue downward."

The Russian economy has been hit hard by falling global oil prices and international sanctions imposed in response to the Kremlin’s illegal annexation of Ukraine’s Crimean Peninsula two years ago and its support for pro-Russian separatists in eastern Ukraine.

President Vladimir Putin has wagered that ordinary Russians will withstand the hardships brought about amid deteriorating relations with the West over his foreign policy maneuvers.

But now, Aleksashenko said, Russia is experiencing a series of negative trends that, by his estimate, dragged down Russia’s GDP by 9 percent in 2015.

Russia’s state statistics agency said GDP fell by only 3.7 percent last year.

Aleksashenko called that a “statistical miracle” that “does not reflect the real problems.”

As the saying goes, there are lies, damned lies, and statistics,” he said. “If we slice and dice [the official statistical data,] it would be evident that the only growing component of Russia’s GDP was net export.”

For all other components, investments in Russia have been decreasing. Hmmmmm.......Nothing's more dangerous than a cornered and wounded animal.Read the full story here.

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