Page 19 - bne_newspaper_April_27_2018

C
M Y CM MY CY CMY K
Eastern Europe
April 27, 2018
First, Orlova believes that in order to ensure security in the 11 Russian regions, where the games are scheduled, the state authorities may limit or even stop local industrial production, which would clearly neutralise any positive effect on growth.
Second, Alfa's economist suggests that recent tightening of sanctions against Russia and the cooling of relations between Russia and the UK may limit tourist flows to Russia and investment activity.
Alfa reminds that despite optimistic expectations in 2014-2015 after 2014 Olympic Games cumula-
www.intellinews.com I Page 19
tive investment fell by 13% and remains below the pre-sanction 2013 level.
Exports of services that stood at $58bn in 2017 still has to catch up with $70bn in 2013, includ- ing transportation and tourism spending, which was at $33bn in 2013 but came in only at $29bn in 2017.
Alfa Bank is thus "now more sceptical about a positive World Cup effect on economic growth and reiterate our expectations of 1.0% y/y GDP growth this year," half below the yet unrevised 2.1% GDP growth projection of the Ministry of Economic Development.
175x144- OL.pdf
1 10/04/2018
11:13 AM