Katrina Shankle/Feb. 21, 2008/9:40 p.m./Global Economics
The IGSO (Institution for Global Social Movements) stated in a report to released Friday that despite the gloomy outlook for the global economy, the Russian economy is expected to grow. Investors will be primarily interested in retail, securities, and industrial production. The capital inflow will produce an economic boom, but it will only be short term. Eventually, Russia will experience an increase in the debt burden on Russian banks and companies.
In light of the global crisis, Russia has no way to avoid economic depression and capital outflow. The result of failing production throughout the rest of the world will cause the price of oil to fall which will undermine the Russian producers of raw materials. Other experts are predicting foregin investment attraction for 2009.
The weakening of capital inflows may restrain money supply growth. However, all positive effects will likely only be seen in 2009.
http://www.sptimes.ru/index.php?action_id=2&story_id=25125
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