The fall in oil prices over the past month or so poses another headwind for Russia’s struggling economy. The drop in prices so far is unlikely to have a major bearing on the immediate outlook – although it does limit the scope for major fiscal stimulus to support growth. A bigger concern, however, would be if oil prices now stay low for a prolonged period. At best, the economy is likely to stagnate. At worst, it could face a crisis in as little as two years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services