June 16, 2014 09:19
Current economic situation in Russia not stagflation - minister
MOSCOW. June 16 (Interfax) - The current economic situation in Russia cannot be characterized as stagflation, Economic Development Minister Alexei Ulyukayev said last week at a presentation of his book on the transformation of the global economy.
"I believe that the current situation cannot be called stagflation. It's not a matter of absolute figures, but dynamics. Stagflation is an economy that did not have high inflation and did not have low rates of economic growth, but for some reason entered this zone. This, for example, was the case with the American and European economies 40 years ago. They had low inflation, it became high inflation, there was strong growth, it became weak growth. For us, inflation of 6-7% is not high. That is, actually it is high, but it was preceded by even higher inflation. Therefore, this is a movement in the economy where growth is slowing and inflation is decreasing, not increasing. This is some new special phenomenon that is in some ways similar to what happens and in some ways a completely new economic reality," Ulyukayev said.
"I believe that in general these manipulations with terms aren't very useful," he added.
"The same as in the conversation about recessions - two consecutive quarters [of contraction] or not two consecutive quarters. Does two quarters less one day count or not? Well, we're falling into an excessive formalism here. But in any case, based on how I understand this, I believe that we don't have stagflation," Ulyukayev said.
He said risks that inflation will accelerate while economic growth remains weak "probably exist, but [they are] low."
"Our inflation will probably go down and will quite certainly go down," Ulyukayev said.
(Our editorial staff can be reached at firstname.lastname@example.org)
October 31, 2014
Ukraine to negotiate with EBRD, EIB on financing gas pipeline construction from Poland
Pipe maker TMK could reduce payments by 60% to 394 mln rubles in H1 dividends (Part 2)
Finland, Valio investigating violations in lactose-free dairy deliveries to Russia
TGK-5 genco swings to 559.5 mln rubles RAS net profit in 9M
Metalloinvest edges Q3 iron ore output down 0.6%
TGK-9 genco swings to 51 mln rubles RAS profit in 9M
Kyiv opens criminal case against Russian actor suspected of shooting at Ukrainian troops
METALLOINVEST EDGES IRON ORE PRODUCTION DOWN TO 9.7 MLN TONNES IN Q3
U.S. ambassador urges Kyiv to enact Ukrainian sanctions against Russia
Central Bank adds 8 payment systems, including Universal Electronic Card, to national register
Inflation in Russia will not drop below 8% before Q1 2015 - ministry
Surgutneftegas sees RAS net profit skyrocket 4.4 times in Q3 to 223 bln rubles
Russian Eurobonds consolidate