The current fluctuation in oil prices, coupled with the currency volatility as well as the Western sanctions does not seem to affect the already struggling economy in Russia. According to the Prime Minister, Arkady Dvorkovich, the main problem facing the economy in the country is the lack of funding for new projects.
Despite the 0.6 percent growth in the economy in 2014, the economy is expected to decline considerably this year. This is mainly because of the decline in oil prices, the sanctions on the country by the West and the underlying structural weaknesses in the country. This is expected to impact greatly on the business as well as consumer confidence.
Despite its earlier predicted decline, of 3 percent, this year, the International Monetary Fund changed its growth outlook for Russia to 3.8 percent this year. However, the prime minister still insists that the country is not likely to suffer this much. According to him, the country has sufficient reserves to withstand this turbulence, especially in the commodities market. Additionally, Dvorkovich mentioned that all these happenings give the countries agricultural and manufacturing a competitive edge, with regards to their pricing in the global market.
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