ABOUT TIME!!! Russias economy slowed sharply at the start of the year as the crisis in Ukraine spooked investors into pulling money out of the country. But with Russian President Vladimir Putin still enjoying high popularity ratings, the economic damage is not yet likely to soften his politics in the region, analysts say. In the first official estimate of the Ukrainian turmoils impact on growth, Economy Minister Alexei Ulyukayev said Wednesday the economy expanded just 0.8 percent in the first quarter from a year earlier — far short of the previous prediction of 2.5 percent. Compared with the previous quarter, the economy contracted 0.5 percent. The acute international situation of the past two months and serious capital flight were to blame, Ulyukayev told parliament. Russian markets have been rattled by the tensions with neighboring Ukraine, where Russia annexed the Black Sea region of Crimea last month. The main stock index tanked 10 percent in March, wiping out billions in market capitalization. In the first three months of 2014, the ruble lost 9 percent against the dollar, making imports more expensive, while spooked investors pulled about $70 billion out of the country — more than in all of 2013. abcnews.go/International/wireStory/russian-economy-slows-amid-ukraine-crisis-23341950
Posted on: Wed, 16 Apr 2014 17:31:26 +0000
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