Though the financial slowdown is milder than expected, Russia’s economy contracted 1.9% of GDP in the first quarter of 2015, according to an Atradius July 2015 Economic and Industry Outlook. The country’s economy, however, is still predicted to contract 3.5% this year. Read the full, updated report.
The economic contraction will not only affect Russia, but it may also have a ripple effect on European markets. “While the Russian economy is not directly of much importance to the rest of the developed world, the emerging economies of Eastern Europe are and trouble in Russia puts pressure on these,” according to an article in The Independent,
In addition, the Associated Press reported on Aug. 4 that Russia is preparing retaliatory measures against non-European Union nations that joined U.S. and EU sanctions against Russia. These countries include Iceland, Liechtenstein, Norway, Montenegro, Albania, Moldova and Ukraine.
Source: FCIB / NACM