August 30th, 2011

Russian Economic Ministry, HSBC predict weak ruble, slow growth

The Wall Street Journal reported on two negative economic forecasts, one from a senior Russian economic official and the other from HSBC.

Andrei Klepach

Deputy Economy Minister Andrei Klepach is predicting a weaker ruble and slower growth over the next three years, as well as a weaker industrial sector.

He estimates the ruble may fall as much as 10 percent by 2014 and blames stagnation in oil prices and a general slowdown of global economic growth.

These comments represent a reversal from last month when Klepach predicted steady growth and a strong ruble.

Meanwhile HSBC “sees the ruble falling nearly 25 percent by 2014,” according to the Journal. The banking giant’s outlook comes from a belief that Russia will continue to experience massive capital outflows.

An estimated $30 billion has already left Russia this year.

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