Thursday, January 8, 2015
Russia Entering 'Full-Fledged Economic Crisis'
http://www.reuters.com/article/2014/12/22/russia-crisis-idUSL6N0U61L320141222. DUE 12 January 2015. What are the predominant reasons for Russia's economic woes? What does the term "junk" refer to in this article? What will be the impact of inflation for the Russian economy?
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Russia is currently facing an economic crisis. According to Russia’s finance minister Alexei Kudrin, said the full effects of Russia’s economic woes will occur next year. There are predominant reasons behind Russia’s economic woes; Kudrin said that the Russian government has pushed their country into a financial crisis. Also, the Russian government failed to tackle their economic troubles fast enough. Kudrin has stated that the sanctions over the Ukraine contributed the most towards Russia’s economic downfall. Moreover, the plummeting oil prices have also contributed to economic troubles. The Russian Economy Minister Alexi Ulyukayev said that of the events that have downgraded Russia’s economy is like a “perfect storm”. Due to the lack of structural reforms, Russia is heavily dependent of oil revenues. Kudrin said that Russia will be downgrade to ‘junk’ status next year which means Russia’s currency will lose most of its buying power. Even if there is inflation in Russia’s economy, their gross domestic product will still fall.
ReplyDeleteThere are many predominant reasons for the economic troubles that Russia faces today. Their government has not tackled problems fast enough, sanctions of Ukraine were blamed for the collapse of the rouble, and the government is not addressing the situation quick enough. Government officials have claimed “external factors” like oil was the key behind the country’s “tough time.” It is warned that Russia will be feeling full effects and is risked at seeing its debt downgraded to “junk” status within the next year. By “junk,” it is a likely rating towards the downgrading of agencies. Most agencies have placed Russia just above that junk status and Kudrin, an investor whom is credited for building Russia’s funds, states that Russia will in fact be entered into this stage. While the currency stabilizes in the next year, its decline will push inflation to 12-15%. The central bank envisages Russia’s incoming year inflations at an estimated 8%. Even if the price of oil were to rise to $80, the gross domestic power will most likely fall by more than 2%. And if the price would be set at $60, there is a decline in GDP by 4%.
ReplyDeleteRight now Russia is facing an economic crisis. They are no addressing the financial problems fast enough. Sanctions over Ukraine were behind this rouble and Russia's debt is downgrading to junk status. Oil has been the key to Russia's tough times since they are dependent on oil revenues. The term junk refers to the amount of money Russia has available to spend and it's worth. With inflation Russia's GDP will still fall by 2% in 2015.
ReplyDeleteThe predominant reasons for the troubles in Russia will force the country into inflation as soon as this year. It is said to be believed that Russia’s government waiting too long to handle their financial issues, said the former finance minister Alexei Kudrin, who is credited for Russia’s $170 billion worth of sovereign worth. Though the rapid decrease in oil prices is not the only thing to blame for the troubles in Russia, the annexation of Ukraine’s Crimea region along with the structural reforms or lack thereof, have deemed to be the main reasons for Russia’s economic woes. Kudrin warned that Russia will downgrade to Junk status in 2015 due to their increasing debt. “Junk” is referring to the rating agencies downgrading the debt. President Putin says that the external factors such as oil, are the reasons behind their “tough times” but to help they are going to place heavy taxes on grain exports. Not being able to access Western capital has kept Russian companies from meeting their debt obligations. With investors not being able to trust the Russian authorities and actions, the rouble value declined to up to 45 percent. Due to inflation, the Russian economy will try to do several things to try to save it. The president already plans on raising taxes on exports. In the first three months of this year, they will push inflation to 12-15 percent, and central banks about 8 percent. The GDP would fall by more than two percent even if the price of oil went up to $80 a barrel, and decreased to $60 a barrel it would decline by four percent or more.
ReplyDeleteRussia is actively undergoing an economic crisis. According to Russia's finance minister, Alexei Kudrin, the Russian government is to blame for the financial catastrophe. Recently sanctions of Ukraine were blamed for the collapse of the rubble and their government hasn't been finding the solutions to problems like these quick enough. Further contributions to the economic deadlock is the lack of structural reforms, Russia is heavily dependent of oil revenue so plummeting oil prices have also contributed to economic troubles. It is cautioned that Russia will be feeling the full impact sometime next when they are degraded to "junk" status.“Junk,” meaning the demotion in rating within agencies. Even if the price of oil were to rise to $80, the gross domestic power will still fall by 2% in 2015.
ReplyDeleteThere are lots of problems at Russia is facing currently. One of the many problems that Russia is in a economic problem is that they are not tackling its financial problems fast enough. Alexei Kudrin is warning about the full effects would be felt next Also another problem would be sanctions of Ukraine were blamed for the collapse of the rouble, and the government is not addressing the situation quick enough. Like the article said again, “"Today, I can say that we have entered or are entering a real, full-fledged economic crisis. Next year we will feel it clearly," the former minister told a news conference.” It was said that in 2015 Russia will downgrade to junk status. The term junk refers to the currency losing its power or downgrading their agency or something like that. Since the government is not quick enough now they have to face all of the problems at once. Russia has been hit by a “perfect storm” stated by Alexei Ulyukayev. He called it that because of the plummeting oil prices, sanctions and a flight of investors’ capital, made worse by a lack of structural reforms that means the economy is overwhelmingly dependent on oil revenues. The impact of inflation for the Russian economy will be that its decline will push inflation to 12% to 15%. The central bank envisages next year's inflation at around 8 percent. Even if the prices of oil rose to $80 per barrel, the GDP will probably fall more than 2% in 2015.
ReplyDeleteThe predominant reasons for Russia’s economic woes is that Russia’s government has pushed into a crisis by not tackling its financial problems fast enough, and the full effects of their downfall will not be felt until next year, said esteemed economist Alexei Kudrin. Kudrin, a major investor who has aided in building about 170 billion dollars of Russia’s wealth, added that the sanctions over Ukraine, not Russia’s failing oil prices, were primarily behind the collapse of the
ReplyDeleterouble that warned that Russia risked seeing its own debt downgraded to junk status in 2015. The term “junk” when referring to Russia’s economy, means that the Russian economy will not hold a strong economic status in the world. They will not have a strong buying power in the world economy. Russia has a lot of debt. Russia has been hit with a “perfect storm” according to Alexi Ulyukayev, of plummeting oil prices, sanctions and a flight investors’ capital, which was made worse by a lack of structural reforms that means the economy is overwhelmingly dependent on oil revenues. In the first three months of 2015 alone, inflation in Russia will rise 12-15 percent, Even with inflation, Russia’s GDP, gross domestic product will fall by at least 2 percent.
One of the predominant reasons for Russia’s economic woes is that Russia has not responded to the financial problems in the past. If they did respond to the problems in a timely manner, then they could have potentially saved themselves from the economic instability. Another reason is that sanctions (a threatened penalty for disobeying a law or rule), due to the takeover of Ukraine's Crimea region, were behind the fall and they warned that in 2015, Russia’s debt would be a part of the junk status. According to the New York Times, a rating downgrade to “junk” status means that “there would be an increase in the overseas borrowing costs companies and the country’s ability to attract foreign investment would be considerably diminished.” Having “junk” status is bad for Russia because it causes inflation in the economy. Inflation will impact the Russian economy because it will make it more expensive for them to borrow money from other countries. In some cases, countries will not even let Russia borrow any money from them. Also, inflation will make the overall price of living for citizens much higher than before. Due to high living expenses, Russian citizens won’t have as much money in their pockets to spend, which means that the economy will not be benefitting.
ReplyDeleteThe predominant reasons for Russia’s economic woes are plummeting oil prices, sanctions, and a fight of investors’ capital. Since Russia is overwhelmingly dependent on oil revenues, a significant decrease in the price of oil would possibly make plummeting oil prices a key cause of Russia’s economic crisis. Although Russia’s top oil company Rosneft reported paying off a $7 billion debt, Russia’s central bank has said that it would need to bail out mid-sized Trust Bank with 3o billion roubles ($544.54 million) to keep it from going bankrupt. Numerous countries have placed economic sanctions on Russia. Despite Russia’s efforts to minimize the effects of sanctions on the country and its currency, the rouble has plummeted in value. In addition, it has been noted that investors are beginning to mistrust Russian authority and its actions. These circumstances are likely to result in Russia’s debt being downgraded to “junk” status by rating agencies. The term “junk” refers to a high-yield or non-investment grade bond. Junk bonds are known for their high default risk. Inflation for the Russian economy will have a great effect on the price of oil per barrel in Russia. This would result in a decline in Russia’s GDP by 4 percent or more.
ReplyDeleteRussia has entered an economic crisis that is expected to hit hard this year. Sanctions over Ukraine, falling oil prices and the rouble have all factored into this "depression". Interest rates are at 17% as of a result of the rouble currency. 35 of the 45 percent of the decline of the rouble was said to be as a result of sanctions. The term 'junk' territory in this article is referring to a scale of how economically terrible a country is. Junk territory can be considered a state of economic depression. Inflation will effect the Russian economy by pushing it to 12-15%. This will greatly effect the price of a barrel of oil, Russia's greatest export.
ReplyDeleteThe predominant reasons for Russia’s economic woes are their decreasing oil prices, sanctions, and a fight of investors’ capital.Another predominant reason for Russia’s economic woes is that Russia has not responded to their financial problems that they had in the past. They could have saved themselves from this if they responded fast enough. Also another problem would be sanctions of Ukraine were blamed for the collapse of the ruble, and the government is not addressing the situation quick enough. It was said that in 2015 Russia will downgrade to junk status. which means there would be an increase in the overseas borrowing costs companies and the country’s ability to attract foreign investment would be considerably diminished.” Having “junk” status is bad for Russia because it causes inflation in the economy. Since the government isn't fast enough, they'll have to face all of the problems at once.The impact of inflation for the Russian economy will be that its decline will push inflation to 12% to 15% and that it will make it more expensive for them to borrow money from other countries. This means that some countries wont let Russia borrow any money what so ever. This also means that Russian citizens wont have that much money either and everything will be expensive.
ReplyDeleteThe predominant reasons for Russia’s economic woes deal mainly with them not addressing their economic crisis’ fast enough. The former finance minister Alexei Kudrin said on Monday that “[the] warning [of] the full effects would be felt next year.” Kudrin is credited with building Russia $170 billion worth of sovereign wealth funds, as well as adding the sanctions over Ukraine. This resulted in the falling of oil prices behind the collapse of the rouble, which then warned Russia about their debt becoming downgraded to ‘junk status’ in 2015. The term “junk” in this article is portrayed as Russia’s economy dropping from Russia’s ex-prime minister not dealing with their economic disadvantages. If this problem is not fixed, it could lead to various negative aspects for Russia. While the currency stabilizes throughout the year, the decline will lead inflation to become 12-15%, and the central banks to about 8%. Even with the inflation, Russia’s GDP will fall by at least 2%.
ReplyDeleteIt has been reported that right now, Russia is entering a "full-fledged economic crisis". According to the article, Alexei Kudrin says that Russia's government has "pushed" the country into this economic crisis because it was not fixing some of the financial issues that were occurring extremely fast. Some of the predominant reasons for Russia's economic woes is because investors who credited building Russia's $170 billions worth of sovereigh wealth funds added that canctions over Ukraine as well as not falling oil prices were primarily behind the collapse of Russia's economy. It's debt has decreased significantly as well in 2015. The former minister stated, "Today, I can say that we have entered or are entering a real, full-fledged economic crisis. Next year we will feel it clearly." The government attempted to reduce the impact of sanctions on the country and its currency which has put a huge negative effect on the interest rates dropping a total of 17 percent. The term "junk" is referring to Russia's economy as downgrading as a whole and not being as strong as it was before. This is referring to the agencies putting Russia into the "junk" status, also known as, downgraded status. Kudrin says that between 25 and 35 percent of the decline in the rouble - down some 45 percent against the dollar so far this year - could be attributed to sanctions. The rest, he said, was down to a stronger dollar and investors' mistrust of Russian authorities and their actions. Although the currency may be stable in the beginning of next year, its decline will push inflation to extreme rates. The government is expecting a rate of 12-15 percent in 2015, Kudrin said. The central bank also believes that next year's inflation will be at around 8 percent. Kudrin also added that at $60 per barrel, GDP would decline by 4 percent or more.
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ReplyDeleteThe predominant reasons for Russia's economic woes includes it's government pushing the country into an economic crisis by not tackling its financial problems fast enough. Russia has been hit by what Economy Minister Alexei Ulyukayev called a "perfect storm" of plummeting oil prices, sanctions and a flight of investors' capital, made worse by a lack of structural reforms that means the economy is overwhelmingly dependent on oil revenues..Sanctions over Ukraine, not falling oil prices, were primarily behind the collapse of the rouble and warned that Russia risked seeing its debt downgraded to junk status in 2015.“Junk” is referring to the rating agencies downgrading the debt. President Putin says that the external factors such as oil, are the reasons behind their “tough times” but to help they are going to place heavy taxes on grain exports. The central bank envisages next year's inflation at around 8 percent. Even if the prices of oil rose to $80 per barrel, the GDP will probably fall more than 2% in 2015.
ReplyDeleteAnley Friden
ReplyDeleteWhat are the predominant reasons for Russia's economic woes? What does the term "junk" refer to in this article? What will be the impact of inflation for the Russian economy?
Russia's economic woes are caused by the crisis' that are happening in the country and how they are not being addressed fast enough to help the economy in any way. The term "Junk" in this article refers to Russia's economic status; which is now a "junk status." Inflation on the Russian economy will cause a fall in the nation's GDP and ,obviously, cause inflation to rise.
Russia is currently facing a vast majority of economic issues due to their decreasing oil prices, sanctions, and a fight of investors’ capital.Also Russia has yet to take care of there financial issues causing them to have more problems.According to the article investors who credited building Russia's $170 billions worth of sovereigh wealth funds increased sanctions over Ukraine as well as not falling oil prices were primarily behind the collapse of Russia's economy. It's debt has dropped significantly in 2015. Attempting to reduce the country's sanctions the government has put a huge negative impact on the country's interest rates by 17 percent.The term "Junk” is referring to the rating agencies decreasing the debt. President Putin says that the external factors such as oil, are the reasons behind their “tough times” but to help they are going to place heavy taxes on grain exports. From an economic point of view inflation from The central bank believes that next year's inflation will be at around 8 percent. Kudrin added that at $60 per barrel, GDP would decline by 2 percent or more.
ReplyDeleteThe economic woes of Russia are caused by the decreasing oil prices, and the fact that Russia didn’t respond to the financial problems in the past. If Russia responded to the problem in a good timely manner, they would have saved themselves from economic instability. The full effects of the down fall will be felt next year said Alexei Kudrin the esteemed economist. The term “junk” that was used in the article is referring to Russia’s economy, meaning that Russia will not hold a strong economic status in the world. Since the oil prices are decreasing the inflation in Russia will rise to 12-15%, and its gross domestic product will fall by 2% in 2015.
ReplyDeleteThe predominant reasons for Russia's economic woes are plummeting oil prices, made worse by a lack of structural reforms which makes the economy is overly dependent on revenue from oil. They also have taken too long to address their financial issues, which has made them worse. The sanctions in Ukraine were said to have been the main cause. In this article, the term "junk" is referring to the status of their debt. Due to inflation the Russian economy will suffer. The value of their dollar will continue to plummet. They may not be able to afford many other things from other countries.
ReplyDeleteThe predominant reasons for Russia's economic woes are plummeting oil prices, made worse by a lack of structural reforms which makes the economy is overly dependent on revenue from oil. They also have taken too long to address their financial issues, which has made them worse. The sanctions in Ukraine were said to have been the main cause. In this article, the term "junk" is referring to the status of their debt. Due to inflation the Russian economy will suffer. The value of their dollar will continue to plummet. They may not be able to afford many other things from other countries.
ReplyDeleteThe predominant reasons for Russia's economic woes was that the government has not been tackling its financial problems fast enough and the decreasing of oil prices; It would've been much easier for them if they had responded back quickly. Also, Kudrin has said that the sanctions over the Ukraine contributed the most towards Russia’s economic downfall, and he then warned that Russia will downgrade to the "Junk" status in 2015 because of their increasing debt. In the article, the term "Junk" meant the rating agencies downgrading the debt and Russia’s economy drops because their not dealing with their economic disadvantages. This means that they will not have a strong buying power in the economy around the world. The impact of inflation for the Russian economy will try to save what is theirs because next year's inflation will be about 8% and it will cause a fall in the nation's GDP.
ReplyDeleteThe predominant reason for Russia's economic woes is that the government has not did anything about it's own financial problems and it has finally caught up to them. They could have avoided this economic instability if they were to try to fix the problems when they were first discovered. In the context of this article, the word "junk" means the status of their debt. With inflation, it will affect the nation's Gross Domestic Product which makes inflation rise.
ReplyDeleteThe predominant reasons for Russia’s economic woes is that Russia’s government has pushed into a crisis by not tackling its financial problems fast enough, and the full effects of their downfall will not be felt until next year, said esteemed economist Alexei Kudrin. If they did respond to the problems in a timely manner, then they could have potentially saved themselves from the economic instability.It is cautioned that Russia will be feeling the full impact sometime next when they are degraded to "junk" status.“Junk,” meaning the demotion in rating within agencies.The impact of inflation for the Russian economy will be that its decline will push inflation to 12% to 15% and that it will make it more expensive for them to borrow money from other countries. This means that some countries wont let Russia borrow any money what so ever. This also means that Russian citizens wont have that much money either and everything will be expensive.
ReplyDeleteThe predominant reasons for Russia's economic woes are sanctions over Ukraine, not falling oil prices, were primarily behind the collapse of the rouble and warned that Russia risked seeing its debt downgraded to junk status in 2015. The term “junk” in this article is portrayed as Russia’s economy dropping from Russia’s ex-prime minister not dealing with their economic disadvantages. The impact of inflation for the Russian economy will be that its decline will push inflation to 12% to 15%. The central bank envisages next year's inflation at around 8 percent. Even if the prices of oil rose to $80 per barrel, the GDP will probably fall more than 2% in 2015.The impact of inflation for the Russian economy will be that its decline will push inflation to 12% to 15%. The central bank envisages next year's inflation at around 8 percent. Even if the prices of oil rose to $80 per barrel, the GDP will probably fall more than 2% in 2015.
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ReplyDeleteRussia’s economic woes are an effect of Russia's government waiting to handle their financial issues, according to former finance minister Alexei Kudrin, who is credited for Russia’s $170 billion worth of sovereign worth. The annexation of Ukraine’s Crimea region and the lack of structural reforms have also been major factors that lead to Russia having economic woes. The term “junk” in this article refers to Russia being unable to hold a strong economic status in the world, which means their buying power will also depreciate. Russia is extremely dependent on oil and their downfall occurred when oil prices began to plummet and structural reforms ceased to exist. The first three months of 2015 call for Russia's inflation to rise about 12-15 percent and their gross domestic profit to drop by at least two percent.
The economic woes of Russia are caused by the decreasing oil prices, and the fact that Russia didn’t respond to the financial problems in the past.The sanctions in Ukraine were said to have been the main cause. According to the article "junk" means "Kudrin forecast a series of defaults among medium and large enterprises, -- though banks were more likely to be supported by the state -- which is likely to result in rating agencies downgrading Russia's debt to "junk" status." ue to inflation, the Russian economy will try to do several things to try to save it. The president already plans on raising taxes on exports. In the first three months of this year, they will push inflation to 12-15 percent, and central banks about 8 percent. The GDP would fall by more than two percent even if the price of oil went up to $80 a barrel, and decreased to $60 a barrel it would decline by four percent or more.-SAM MOHAMMED
ReplyDeleteThe main reasons for Russia's economic woes are due to the rapidly declining oil prices and the sanctions over Ukraine. These problems are a result of Russia putting their problems to the side, and now it's come back to haunt them. During this year, Kudrin predicted that their economy would be in a crisis and he was right. Russia is almost to "junk" status which is the demotion in rating within agencies. So basically, Russia is about to hit rock bottom. In order to stabilize the economy, Russia is going to raise their inflation rate from 12%-15%.
ReplyDeleteRussia is currently facing a vast majority of economic issues due to their decreasing oil prices, sanctions, and a fight of investors’ capital. Also, Russia has yet to take care of there financial issues causing them to have more problems. In the article, Kudrin says that Russia will be downgrade to ‘junk’ status next year meaning Russia’s currency will lose most of its buying power, causing it to not be one if the top nations. Even if there is inflation in Russia’s economy, their gross domestic product will still fall. With this inflation, the Russian economy will try to do several things to try to save it. The president already plans on raising taxes on exports as one of the ways to help. In the first three months of this year, they will push inflation to 12-15 percent, and central banks about 8 percent. The GDP would fall by more than two percent even if the price of oil went up to $80 a barrel, and decreased to $60 a barrel it would decline by four percent or more.
ReplyDeleteRussia has officially entered into an economic crisis. One so bad that it is said their inflation can be seen at 12-15% this new year. The many reasons for Russia's financial problem are falling crude prices, export prices, lack of business paying their debts, and sanctions. When the article mentions "junk" status, which is what Russia will be known as having if their economy doesn't get better. The impacts of Russia's well predicted inflation are a series of structural reforms which means the economy will be overwhelmingly dependent on oil revenues.
ReplyDeleteWhat are the predominant reasons for Russia's economic woes? What does the term "junk" refer to in this article? What will be the impact of inflation for the Russian economy?
ReplyDeleteEconomic woes in Russia are formed from not responding to their financial problems fast enough due to plummeting oil prices, sanctions and a flight of investors' capital. The term "Junk" refers to Russia's falling economy. The impact of inflation for the Russian economy will push inflation to 12-15 percent by 2015, or according to the Central Bank, to 8 percent.
ReplyDeleteThere are several reasons for Russia's economic woes today. One of the main reasons is that it's government is pushing the country into an economic crisis by not tackling its financial problems fast enough. Sanctions of Ukraine were blamed for the collapse. Government officials have claimed “external factors” like oil to be the key behind the country’s “tough time.” The term junk refers to the amount of money Russia has available to spend and it's worth. The impact of inflation for the Russian economy will be that its decline will push inflation to 12% to 15%. The central bank envisages next year's inflation at around 8 percent. Even if the prices of oil rose to $80 per barrel, the GDP will probably fall more than 2% in 2015.
Some of the many predominant reasons for Russia's economic woes are Russia's government has pushed the country into an economic crisis by not tackling its financial problems fast enough, former finance minister Alexei Kudrin said, and the economy is overwhelming too dependent on the oil revenues. The term “junk” when referring to Russia’s economy, means that the Russian economy will not hold a strong economic status in the world. They would be unable to stabilize the flow of their economy. Russia has a lot of debt, Russia has been hit with a “perfect storm” according to Alexi Ulyukayev. "Russia will get a downgrade," Kudrin said. " It will enter the 'junk' territory." While the currency may stabilise in the first quarter of next year, its decline will likely help to push inflation to a rate of 12-15 percent in 2015, Kudrin said. The central bank envisages next year's inflation at around 8 percent. However, Russia’s GDP will fall by at least 2% even with the inflation in 2015.
ReplyDeleteOne of the many problems that Russia is in a economic problem is that they are not tackling its financial problems fast enough. It is said to be believed that Russia’s government waiting too long to handle their financial issues, said the former finance minister Alexei Kudrin, who is credited for Russia’s $170 billion worth of sovereign worth. Kudrin has stated that the sanctions over the Ukraine contributed the most towards Russia’s economic downfall. Oil has been the key to Russia's tough times since they are dependent on oil revenues. The government attempted to reduce the impact of sanctions on the country and its currency which has put a huge negative effect on the interest rates dropping a total of 17 percent. The term “junk” in this article refers to a high-yield or non-investment grade bond. Due to inflation the Russian economy will suffer. The impact of inflation for the Russian economy will push inflation to 12-15 percent by 2015, or according to the Central Bank, to 8 percent. So now due to high living expenses, Russian citizens won’t have as much money in their pockets to spend, which means that the economy will not be benefitting.
ReplyDeleteThere are a few predominant reasons for Russia's economic woes. A statement by Kudrin, an investor with Russia, states that sanctions over the Ukraine were behind the collapse of the rouble. Kudrin said he believed that between 25 and 35 percent of the decline in the rouble - down some 45 percent against the dollar so far this year - could be attributed to sanctions. Another reason can be the plummeting of oil prices and that the country is overly dependent on the oil revenues. "Junk" is referred to the potential economic status of Russia. Russia will downgrade into this status. In the Russian economy there will be a decline that will push inflation to 12% to 15%. The central bank envisages next year's inflation at around 8 percent. Even if the prices of oil rose to $80 per barrel, the GDP will probably fall more than 2% in 2015.
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ReplyDeleteRussia will soon be experiencing harsh economic troubles due to its slow reacting government. The main reasons for Russias financial issues are plummeting oil prices, lack of business paying their debts, export prices, and sanctions. By not reacting quick enough these issues have piled up and has made Russia jump into "junk" territory. I believe "junk" territory in this article means almost rock bottom. The economy will descend and reach so far down that it will not be able to stabalize again. That is "junk" status. Inflation will effect the Russian economy by pushing it to 12-15%. Although Russia is predicted to really feel the impact of the economic crisis next year. So even if there were to be an inflation within the economy their currency would of already lost most of its buying power and it would not be worth squat.
ReplyDeleteThe predominant reasons for Russia's economic woes are financial reasons. This is because they are not resolving their financial problems fast enough.In the article "junk" refers to their debt that they have on things. What will impact the inflation for the Russian economy is GDP will decline by 4% and also cause inflation to rise which of course is no good. even if the price of oil rose to $80 per barrel, gross domestic product was still likely to fall by more than 2 percent in 2015.
ReplyDeleteOne of Russia's main economic woe is that it's government is pushing them into a crisis. By not handling their financial issues quick enough is where the term woe comes from. The term junk refers to the rating agencies downgrading their debt. The lowering cost of oil prices are causing Russia to lose several billion dollars which is going to cause them to fall into a depression. The inflation in their country will still cause their gross domestic product to still fall causing the price of their money to lose value.
ReplyDeleteThe predominant reasons for Russia's economic woes are due to not responding to their financial problems, Ukraine were blamed for the rouble collapse, and the governments not addressing the problems fast enough. The term "junk" in this article refers to Russia's value of money and how much they currently have. The impact of inflation on the Russian economy is that their gdp will still fall by 2% in 2015.
ReplyDeleteThe predominant reasons for Russia’s economic woes include not dealing with problems of the past. Also, sanctions, a threatened penalty for disobeying a law or rule, takeover of Ukraine's Crimea region, is said to be behind the fall. It has been warned that in 2015, Russia’s debt would be a part of the junk status. While the government attempts to reduce the impact of sanctions on the country and its currency, a drop in interest rates by 17 percent takes place. The New York Times, claims a rating downgrade to “junk” status means that “there would be an increase in the overseas borrowing costs companies and the country’s ability to attract foreign investment would be considerably diminished.” "Junk" status is bad for Russia due to its cause of inflation. The Russian economy will experience a GDP decline of 4%. Even if the price of oil rose to $80 per barrel, GDP would still be likely to fall by more than 2% in 2015.
ReplyDeleteAs of right now, in this very moment and instant, Russia is currently facing an economic crisis. Russia’s finance minister Alexei Kudrin, stated the full effects of Russia’s economic woes will occur next year. There are predominant reasons behind Russia’s economic woes; Kudrin said that the Russian government has pushed their country into a financial crisis. Also, the Russian government failed to tackle their economic troubles fast enough. Kudrin has stated that the sanctions over the Ukraine contributed the most towards Russia’s economic downfall. While the currency stabilizes in the next year, its decline will push inflation to 12-15%. The central bank envisages Russia’s incoming year inflations at an estimated 8%. Even if the price of oil were to rise to $80, the gross domestic power will most likely fall by more than 2%. And if the price would be set at $60, there is a decline in GDP by 4%.
ReplyDeleteThe predominant reasons for Russia's economic woes is the fact that the government was not fast enough to respond to the financial problems and the sanctions on Ukraine which is causing the inflation of the Russian currency, rouble. Kudrin said that that Russia will be downgraded to "junk" status next year meaning the rouble will lose most of its buying power in the coming year. For the first quarter of next year, its decline will likely help to push inflation to a rate of 12-15 percent in 2015, Kudrin said and the central bank in Russia predict that next year's inflation at around 8 percent. Even if the price of oil rose to $80 per barrel, gross domestic product would still be short by more than 2 percent.
ReplyDeleteThe predominant reasons for Russia’s economic woes are that the government has not been tackling its financial problems fast enough. The sanctions over the Ukraine, not falling oil prices, are also primarily behind the collapse of the rouble. The term “junk” refers to in this article is the debt that Russia is in. The impact of inflation on the Russian economy will be pushed to a rate of 12-15% because of the decline. According to the article, the central bank envisages next year’s inflation at around 8%.
ReplyDeleteThe predominant reasons for Russia’s economic woes is that Russia’s government has pushed into a crisis by not tackling its financial problems fast enough by not handling the plummeting oil prices, sanctions related to Russia's military action in Ukraine and a flight of investor capital as mentioned by economist Alexei Kudrin. Meaning Russia's economy is overly dependent on oil reserves. The term “junk” when referring to Russia’s economy, is the low credit rating status Russia is heading in, meaning that Russia will lose some of their investors. They will not have a strong buying power in the world economy. In the first three months of 2015 alone, inflation in Russia will rise 12-15 percent, Even with inflation, Russia’s GDP, gross domestic product will fall by at least 2 percent.
ReplyDeleteThe predominant reasons for the troubles in Russia will force the country into inflation as soon as this year and the people of Russia should really feel it by next year. It is believed that Russia’s government is waiting too long to handle their financial issues, stated former finance minister Alexei Kudrin, who is credited for creating Russia’s $170 billion of sovereign worth. Rapid decreases in oil prices may not be the only reason for Russia's economic woes; there's also the annexation of Ukraine’s Crimea region along with the structural reforms and/or lack thereof. Kudrin has warned that Russia will downgrade to Junk status in 2015 due to their increasing debt. The term “junk” refers to the rating agencies downgrading the debt. President Putin says that external factors such as oil, are the reasons behind their “tough times” but to help they are going to place heavy taxes on grain exports. Not being able to access Western capital has kept Russian companies from meeting their debt obligations. With investors not being able to trust the Russian authorities and actions, the rouble value has declined approximately 45 percent. The Russian economy will try to do several things to try to save the nation from all of this inflation. The president plans on raising taxes on exports and in the first three months of this year, they will push inflation to 12-15 percent, and central banks about 8 percent. The GDP would fall by more than 2 percent even if the price of oil made it up to $80 a barrel, and if it decreased to $60 a barrel it would decline by at least 4 percent.
ReplyDeleteThe predominant reasons for Russia’s economic woes are that Russia’s government is failing to take action upon the country’s financial problems in a suitable amount of time, and Kudrin pushed the country into those financial problems. There is a debt of billions of dollar that has been created by Kudrin. In this article, “junk” refers to a rating given by agencies that describes a country’s financial stance. In this case, it’s referring to the downgrading of Russia’s economy. The impact that inflation will have on the Russian economy is minimal because the GDP would still fall, causing the country to gain no benefits.
ReplyDeleteThe predominant reasons for Russia’s economic woes is that Russia’s government has pushed into a crisis by not tackling its financial problems fast enough by not handling the plummeting oil prices, sanctions related to Russia's military action in Ukraine and a flight of investor capital. The term "junk " in the article means the debt that Russia is in. The impact on inflation on the Russian economy will be pushed to a rate of 12/ 15% because of the decline. According to the article, the central bank and envisages next years inflation will be at around 8% .
ReplyDeletehere are predominant reasons behind Russia’s economic woes; Kudrin said that the Russian government has pushed their country into a financial crisis. Also, the Russian government failed to tackle their economic troubles fast enough. Kudrin has stated that the sanctions over the Ukraine contributed the most towards Russia’s economic downfall. Moreover, the plummeting oil prices have also contributed to economic troubles. The Russian Economy Minister Alexi Ulyukayev said that of the events that have downgraded Russia’s economy is like a “perfect storm”. It is warned that Russia will be feeling full effects and is risked at seeing its debt downgraded to “junk” status within the next year. By “junk,” it is a likely rating towards the downgrading of agencies. Most agencies have placed Russia just above that junk status and Kudrin, an investor whom is credited for building Russia’s funds, states that Russia will in fact be entered into this stage.
ReplyDeleteRussia is actively undergoing an economic crisis. According to Russia's finance minister, Alexei Kudrin, the Russian government is to blame for the financial catastrophe. Recently sanctions of Ukraine were blamed for the collapse of the rubble and their government hasn't been finding the solutions to problems like these quick enough. “junk” when referring to Russia’s economy, means that the Russian economy will not hold a strong economic status in the world. They will not have a strong buying power in the world economy. Russia has a lot of debt. Russia has been hit with a “perfect storm” according to Alexi Ulyukayev, of plummeting oil prices, sanctions and a flight investors’ capital, which was made worse by a lack of structural reforms that means the economy is overwhelmingly dependent on oil revenues. Russian citizens won’t have as much money in their pockets to spend, which means that the economy will not be benefitting. Inflation will effect the Russian economy by pushing it to 12-15%. This will greatly effect the price of a barrel of oil, Russia's greatest export.
ReplyDeleteThe reasons for Russia’s economic woes is that their government has not tackled its financial problems fast enough with how quickly oil prices are dropping, sanctions related to Russia's military action in Ukraine and a flight of investor capital as mentioned by economist Alexei Kudrin. Meaning Russia's economy depends on oil reserves. The term “junk” when referring to Russia’s economy, is the low credit rating status, meaning that Russia will lose some of their investors. They will not have a strong buying power in the world economy. In the beginning of 2015, inflation in Russia will rise 12-15 percent. Even with inflation, Russia’s GDP, gross domestic product will fall by at least 2 percent.
ReplyDeleteRussia's economic woes are due to pushing back its financial crisis, and now it may be too late to male a comeback. Its oil prices have dropped drastically. They cannot meet debt obligations with western countries because the value of the rouble has decreased. Russia will be considered "junk" because it will no longer hold the high status that has for years. Inflation is expected to be somewhere around 8%. Investors can no longer trust Russia and its authorities. Oil prices will greatly increase. It will be difficult for Russia to regain its reputation at this point because so many have lost trust and respect for their government. There is kind of this idea that Russia has it all together, but apparently they do not. This could effect other countries that buy products from Russia, specifically order. In the big picture, though, I think the other countries will not be too negatively effected. Products can be bought from other countries, so maybe those economies will flourish.
ReplyDeleteRussia's economic debt is based mainly upon the slow response to the plummeting oil prices. Many people ad economists believe that if the crisis was attended to at an earlier time, the crisis they are currently in would have been avoided. Along with plummeting oil prices, there have also been sanctions which have threatened penalty for disobeying a law and the takeover of Ukraine's Crimea region is said to be behind the fall. It is said that Russia will reach junk status soon, which refers to low credit rating status and a loss in oil investors. The increase in Russia's overseas borrowing will add to the countries debt. Russia's inflation will be pushed from 12% to 15%. This in turn will decrease the GDP by at least 2% in accordance with cost fluctuation. Although the drastic changes begun in 2014, it is not expected to be felt till 2015. The former minister stated, "Today, I can say that we have entered or are entering a real, full-fledged economic crisis. Next year we will feel it clearly."
ReplyDeleteThe predominant reasonreasons for Russia's economic woe was due to Russia's government pushing the country into an economic crisis by not tackling it financial problems fast enough. Russia has been hit by what Economy Minister Alexei Ulyukayev called a "perfect storm" of plummeting oil prices, sanctions and a flight of investors' capital, made worse by a lack of structural reforms that means the economy is overwhelmingly dependent on oil revenues. The term "junk" refers to the agencies rating in downgrading the debt. Most agencies have put Russia this year one notch above junk status. "Russia will get a downgrade," Kudrin said. " It will enter the 'junk' territory." And even if the price of oil rose to $80 per barrel, gross domestic product was still likely to fall by more than 2 percent in 2015, Kudrin said. At $60 per barrel GDP would decline by 4 percent or more, he added, echoing the central bank's latest assessment, published last week
ReplyDeleteRussia is undoubtedly having an economic crisis right now. Their government has not reacted quick enough to the problems they are facing. The main cause of this is, according to the article, because of the sanctions on Ukraine and lack of structural reform. Kudrin said he believed that between 25 and 35 percent of the decline in the rouble - down some 45 percent against the dollar so far this year - could be attributed to sanction These sanctions eventually led to Russia's falling oil prices and junk status. "Junk status" in this article is a term used in regards to their low economic status.
ReplyDeleteThe predominant reasons for Russia’s economic woes can be linked to the government,. The Russian government set sanctions in Ukraine. Decreasing oil prices and a dependence on oil revenues create more problems for Russia. The term “junk” refers to the economic standing of the country. Russia’s economic reputation is being downgraded. The impact for the Russian economy means that if oil prices rose to eighty dollars per barrel, GDP was still likely to fall by more than 2 percent this year. At sixty dollars per barrel GDP would decrease by four or more percent.
ReplyDeleteCurrently, Russia is going through an economic crisis. Apparently, the Russian government is responsible for this financial downfall. Sanctions of Ukraine were recently blamed for the collapse of the rubble and their government have not been working productively enough to solve these problems.Some other predominant reasons for the economic crisis is the lack of structural reforms. Russia is heavily dependent of oil revenue so plummeting oil prices have also contributed to economic troubles.The term junk refers to the amount of money Russia has available to spend and what it's worth. With inflation Russia's GDP will still fall by 2% in 2015.. Even if the price of oil were to rise to $80, the gross domestic power will still fall by 2% in 2015.
ReplyDeleteThe main problem with Russia's government is that it has pushed the country into an economic crisis by not tackling its financial problems. Investors who are credited with building Russia's $170 billion worth of sovereign wealth funds -- added that sanctions over Ukraine, not falling oil prices, were primarily behind the collapse of the rouble and warned that Russia risked seeing its debt downgraded to junk status in 2015. Kudrin forecast a series of defaults among medium and large enterprises, though banks were more likely to be supported by the state -- which is likely to result in rating agencies downgrading Russia's debt to "junk" status. A junk status is a D to F rating, which means they are not reliable in paying back their debts. Anything B and over is considered safe. While the currency may stabilise in the first quarter of next year, its decline will likely help to push inflation to a rate of 12-15 percent in 2015, Kudrin said. The central bank envisages next year's inflation at around 8 percent. And even if the price of oil rose to $80 per barrel, gross domestic product was still likely to fall by more than 2 percent in 2015, Kudrin said. At $60 per barrel GDP would decline by 4 percent or more, he added, echoing the central bank's latest assessment, published last week. So Russia is really in a bad situation right now, and they need to find a way out of it.
ReplyDeleteThe predominant reasons for Russia’s economic woes is that Russia’s government has pushed into a crisis by not tackling its financial problems fast enough, and the full effects of their downfall will not be felt until next year, said esteemed economist Alexei Kudrin. It is said to be believed that Russia’s government waiting too long to handle their financial issues, said the former finance minister Alexei Kudrin, who is credited for Russia’s $170 billion worth of sovereign worth. Kudrin has stated that the sanctions over the Ukraine contributed the most towards Russia’s economic downfall. Oil has been the key to Russia's tough times since they are dependent on oil revenues. The government attempted to reduce the impact of sanctions on the country and its currency which has put a huge negative effect on the interest rates dropping a total of 17 percent. The term “junk” in this article refers to a high-yield or non-investment grade bond. The central bank envisages next year's inflation at around 8 percent. And even if the price of oil rose to $80 per barrel, gross domestic product was still likely to fall by more than 2 percent in 2015, Kudrin said. At $60 per barrel GDP would decline by 4 percent or more, he added, echoing the central bank's latest assessment, published last week. This means that Russian citizens wont have that much money either and everything will be expensive. Their economy is at stake.
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