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Russia more financially stable than China – report
December 15, 2016, 6:07 pm

Russia's economy is expected to bounce back in 2017 and the latest Bank of America Merrill Lynch report is sure to give President Vladimir Putin a boost [PPIO]

Russia’s economy is expected to bounce back in 2017 and the latest Bank of America Merrill Lynch report is sure to give President Vladimir Putin a boost [PPIO]


The Bank of America Merrill Lynch’s latest ranking of developing nation economies has put Russia ahead of China in terms of financial stability.

The report released earlier in the week predicted a recovery in emerging markets – Russia, being a case in point – amid modest global economic growth.

“Modest economic growth of 4.7 per cent is expected in emerging markets [in 2017], up from 4.1 per cent, which is better than in the U.S. and the rest of the developed world,” the report said.

The report looks at fiscal stability versus vulnerability, growth and inflation versus stagflation, and high debt, among other factors. South Korea is the most fiscally stable emerging market; Russia comes in second, followed by China.

India will gain top the world in terms of GDP growth, coming in at 7.6 per cent – a full one per cent ahead of China, but it came in fourth, one ranking below China in fiscal stability.

Brazil fell to the eighth ranking while South Africa remained where it was last year, at the bottom of the top 10 emerging markets.

The report said that “slowing inflation should support domestic demand [in Russia] and drive a modest 1.1 per cent recovery”. Part of that recovery will be fueled by a resurgent energy market as oil prices are expected to hit $60 and above in 2017.

A Bank of America Merrill Lynch strategy team last team said that Russia’s October manufacturing Purchasing Manager’s Index (PMI) was a good indicator of Moscow’s road to recovery.

“It supports our expectation that the Russian economy should be edging closer to renewed real GDP growth in 4Q16 and be on track for 1.1% expansion in 2017. Among the main drivers are the eventual stabilization of consumer and investment demand, as persistent nominal wage growth should start to warrant real expansion due to slowing inflation,” the strategy team said.

The BRICS Post with inputs from Agencies

2 Responses to Russia more financially stable than China – report

  1. ipman7 Reply

    December 16, 2016 at 11:11 am

    These are the type of reports that we should be hearing from the news Media more often.Russia and China ahead in terms of financial stability. Where is America in all this ??? The US should learn from these Nations about how to boost a country’s economy and take their country (US)out of debt. America claims to be the Super Power of the world, but has the Most Debt. Credit and free easy access to printing Money is what the America Country thrives on. Common sense will tell you that a country that struggles with money (US) is definitely not a good role model. America know it’s time has come the empire has fallen.But they refuse to acknowledge this. America needs to looks at History and comprehend what the past has taught us. World dominance is not your to have The only things that Triumph is Respect for People and Property and the Right and Will of any Nations to be able to Build and Prosper and in what ever field it may pursue without Foreign Dictatorship.

  2. jasmin.m Reply

    January 8, 2017 at 9:12 am

    My friend you talk just like socialist,so i reckon you must be inteligent sort of people.But now when you have mentionet money,i hope that altyn curency will be 100 to 1 against us dollar,sinnce is gold suported.

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