The Lastest Macroeconomic News
02.04.2022 17:06 Russian banking system and ruble recover despite Western sanctions
The Russian banking system and national currency have recovered in recent days after being hit by sanctions. This became possible due to the preservation of energy exports and the introduction of foreign exchange controls in order to protect the domestic economy. The ruble approached its value in the first half of February. Analysts say the situation is stabilizing as panic subsides. The recovery was made possible by the severe restrictions that the Central Bank of the Russian Federation imposed on currency exchange, withdrawals and transfers of hard currency abroad. But it also has to do with a very real factor still working in Russia`s favor: the persistence of gas and oil exports amid declining imports.
27.03.2022 19:47 Economists TD Bank lowered their forecast for global economic growth in 2022
Economists TD Bank in mid-March lowered their economic forecasts, referring to the situation in Ukraine and the subsequent impact on world commodity prices. They predict the growth of global GDP this year at the level of 3.9% compared with their previous forecast of 4.7%. Also lowered the forecast for 2023 from 3.7% to 3.4%. The forecast states that the situation in Ukraine and the accompanying shock of energy prices, food and other goods are the main factor in lowering the forecast in Europe. Soft growth in the winter months against the background of the distribution of OMICRON COVID-19 version also affected the transfer for 2022.
21.03.2022 13:27 The head of the Central Bank of Russia predicts an economic downturn and talks about the measures taken
The head of the Russian Central Bank, Elvira Nabiullina, said on Friday, March 21, that the country`s economy will contract in the coming quarters, and inflation will jump as sanctions imposed due to events in Ukraine have an impact on the economic situation. Earlier, the board of directors of the bank left the interest rate at 20 percent. The bank said that the doubling of interest rates on February 28 from 9.5% and capital controls to limit the movement of money have helped maintain financial stability in Russia and stem uncontrolled price increases. But the latest inflation data shows that as of March 11, prices in Russia were up 12.5% from a year ago. The Central Bank expects that the inflation target of 4% will be reached no earlier than 2024.
24.01.2022 14:57 Kaluga Automobile Electrical Equipment Plant will attract 132 million rubles from CentroCredit Bank
Centrocredit Bank will soon become a major creditor of PJSC Kaluga Automobile Electrical Equipment Plant (KZAE). Recently, the Board of Directors of the plant decided to apply to the bank and raise 132 million rubles in order to refinance the existing debt and maintain an acceptable level of working capital. This is stated in the official message published on the plant`s website. One of the goals of attracting a loan is the payment of debts on previous loans. The above amount should help the company pay off creditors. In addition, the funds will be used to pay the debt under the novation agreement. The remaining amount is planned to be used in settlements with suppliers of equipment, materials and components.
20.01.2022 21:47 The number of microloans issued in Russia hit a record high in 2021
The past year 2021 turned out to be fruitful for microfinance organizations. Russian citizens took small loans even more willingly than a year earlier. In particular, in the 3rd quarter of 2021, the total portfolio of microloans reached RUB 306 billion, an increase of 6% compared to the same period in 2020. It is noteworthy that with an increase in the number of microloans and the average amount issued, the number of overdue debts did not increase.
Experts note that the growth of this sector of the economy was due to a decrease in real incomes of citizens. At the same time, an increasing number of people lived in a paycheck-to-paycheck regime, and in the event of unforeseen expenses, they fell into difficult financial situations. Against this background, loans from MFIs have become a real salvation. The movement of borrowers from banks towards microloans was stimulated by a decrease in interest as a result of the actions of the Central Bank of the Russian Federation, an increase in the loan term, as well as the simplicity and accessibility of registration.
20.01.2022 16:39 CentroCredit Bank opened access to the SPB Exchange for its clients
At the end of December 2021, Centrocredit Bank provided its clients with the opportunity to trade foreign securities on the St. Petersburg Stock Exchange and for this purpose launched a special Online tariff plan, which involves a commission of only 0.01%. The IT-specialists of the bank implemented the possibility of opening a brokerage account remotely, which became a convenient addition to the offer. As part of the offer, leveraged trading is available for traders, as a result of which clients have the opportunity to buy shares for an amount greater than the funds deposited. High liquidity, the ability to purchase securities of companies from sectors that are not in Russia, risk management, as well as competent diversification of investments and optimization of the investment portfolio - such opportunities are provided to clients by trading in shares of foreign companies on the SPB Exchange.
17.01.2022 13:01 In 2021, the number of bankruptcies of individuals increased significantly in Russia
In Russia, in the last month of 2021, the number of applications from citizens to the MFC regarding their recognition as bankrupt under a simplified scheme has significantly increased. In total, 1072 applications for out-of-court bankruptcy were recorded out of court. The indicator exceeded the value of November by 90.7%. The increase in requests was somewhat unexpected, since no such values were observed throughout the year. A greater number of bankruptcy filings were recorded only immediately after the simplified procedure became possible in Russia. This was in the fall of 2020. In 2021, only 4.7 thousand applications were submitted, of which a quarter, according to statistics, fell in December. In each of the other months, the number of hits did not exceed a few hundred. Such data was provided by Fedresurs.
10.01.2022 12:03 Russia`s Economy Outlook 2022
The Russian economy recovered to pre-pandemic levels in 2021 after its sharpest contraction in eleven years of 3% in 2020. But it may now face headwinds from a possible drop in prices for oil, its main export, and numerous interest rate hikes. The latest Russian Economic Report from the World Bank expects Russian growth to slow in 2022 and 2023 after a rebound of 4.3% GDP growth in 2021. The Bank revised its 2022 GDP growth forecast downwards from 2.8% to 2.4%, while seeing the growth slowing down to 1.8% in 2023. The EBRD also cut Russia`s outlook for 2022 to 3% in November, citing risks from a possible drop in oil prices in 2022 and the impact of the coronavirus variants. The World Bank named the four main risks to the Russian economy: the pandemic, an unexpected surge of inflation, international sanctions, and, in the long term, green energy transition. Low rates of vaccination in Russia make the pandemic a particularly large threat to the economy. As followed by bne IntelliNews, the Russian economy grew 4.3% year on year during the third quarter of 2021, but the post-coronavirus recovery was almost over by the autumn.
16.12.2021 12:14 Russian inflation in November: mounting pressure in durables is the key concern
November CPI data brought both positive and negative news. Stabilization of local food price growth and the one-off nature of the spike in services brought some relief, but mounting upward price pressure in non-food products and high core CPI are causes for concern. The CPI trend is testing the upper border of the Bank of Russia`s base case. Russian CPI picked up from 8.1% YoY in October to 8.4% YoY in November, broadly in line with what was suggested by the weekly data. According to Bank of Russia data released earlier, higher inflationary pressure is to be seen amid stable, but elevated, houiseholds` inflation expectations. There are several takeaways from the data, both positive and negative.
04.12.2021 16:14 Egypt`s Economy Grew by 9.8% In Q1 FY 2021-22
Egypt`s economy grew by 9.8% in the first quarter of the fiscal year 2021-22 that began in July, compared with 0.7% in the same period last year, Minister of Planning and Economic Development Hala al-Saeed said. Egypt expects a GDP growth of 5.5-5.7% in FY 2021-22 that ends in June, she added. Her remarks were made during a cabinet session chaired by Prime Minister Mostafa Madbouly, during which she reviewed the initial indicators of the country`s economic performance in the first quarter. The restaurant and hotel sector recorded the highest quarterly growth rate of about 181.8 percent, reflecting the remarkable recovery from the coronavirus repercussions. The telecommunications, manufacturing and construction sectors registered a growth rate of 16.3%, about 15.2%, and 10.5%, respectively.