The Ukraine crisis has led to the dramatic slow down of the Russian economy. The country has marked a tremendous slow down in the initial three months of 2014, and there are rising concerns that this time, the economic crisis in Eastern Europe may deepen tremendously.
Investors are careful with their stock purchases and everyone is trying to keep their ''investing'' decisions on hold. The main slow down of the Russian economy has been attributed to the tension in Ukraine, and its sudden cut off of business relationships with Western countries. The ruble has gone down and inflation has gone up - not a good pre-condition for investing at this point.
The central bank has reacted by boosting interest rates twice, negatively affecting most business owners and households. The US, along with the European Union, have suggested sanctions for Russian individuals and entities that have annexed Ukraine's Crimea area, thus causing even higher levels of conflict and separatist movements in the area. The US and the European Union have warned Russia that they would exercise even tougher control over them if they interfere with the Ukrainian political elections, set for May 25. The International Monetary Fund has warned that Russia's growth may go severely down, and blamed Ukraine for the economic slow down.
"Investment will further contract due to the uncertainty around the geopolitical situation," announced the IMF. "While still strong, the pace of consumption growth-supported by wage and credit growth-has begun to slow."
The Russian markets and the ruble have hit significantly over the Ukraine political setting
The conflict in Ukraine may have a drastically negative effect over the European and the US economy, and the faster it has been solved, the faster the economic indicators would go up again.
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
