Goldman Sachs: Russia and Ukraine Economies Will Decline
The Russian economy will contract by 5.5% in 2009, while GDP will fall by 3% in Kazakhstan and 15% in Ukraine, according to estimates by investment bank Goldman Sachs.
Bank has reduced the forecast growth from Russia, Kazakhstan and Ukraine, as the global outlook continues to deteriorate, says Bloomberg.
The three countries “have suffered on the background of global crisis and decline of prices for raw materials” said Rory MacFarquhar, an economist from Moscow Goldman Sachs division. Companies and banks in the region make efforts to repay foreign loans, in terms of the price of the main sources of income (oil, gas and metals) has crashed.
February had come to confirm the crisis in Eastern Europe, announcing high industrial production decreases, of over 10%. Neither Western Europe has not escaped untouched, but with not the same magnitude as that from Eastern Europe.
[...] Excerpted from:Russian and Ukraine economy will decline | Money Finance News [...]