Agencies-Gaza post
Russian economy better than expected: JPMorgan
Russia’s economy is going better with Ukraine-related Western boycotts than could be wished, JPMorgan Chase stated in a note to customers dated last week and made public on Monday.
The biggest US investment bank said in a press release that business sentiment surveys from the country “are signaling a not very deep slump in Russia, and therefore imply upside risks to our growth forecasts.” It also cited high-frequency needles such as electricity consumption and financial flows, which signal that the economy is in better condition than expected.
“The data at hand, therefore, do not point to an abrupt plunge inactivity, at least for now,” the bank’s critics state in the note, as cited by Business Insider.
JPMorgan also backtracked on its earlier forecasts of a 35% reduction in Russian GDP in the second quarter and 7% for all of 2022, now telling us the formations are likely to be much less scary. The bank did, however, note that the impact of current and potential sanctions will be felt and that the country’s economy would be in far more reasonable shape if Moscow had not established its military function in Ukraine.
“The impact of sanctions will continue building in coming quarters, we expect. The GDP profile, therefore, looks increasingly likely to be consistent with a drawn-out, but not very sharp recession,” the analysts expect, stating that export charges are offering a particular drop.
Source: RT
