Russian exchange traded funds (ETFs) may see gains this year. Or maybe they won’t. According to one source, Russia may experience some robust growth. The head of Russia’s biggest bank begs to differ, disregarding any chance of a quick recovery.
As stated in Xinhuanews, Morgan Stanley Chairman John Mack remarked that “our expectation is that the fastest rates of economic growth this year are expected in China, India, Brazil and Russia (BRIC).” [Russia’s ETFs: Ready to Power Up?]
“Russia still has a very strong balance sheet and low overall leverage, which remain key advantages for the country. However, it continues to lag in investment due to the volatile macro environment and weak property rights,” adds Mack.
Sberbank CEO German Gref, on the other hand, stated that “it’s clear there won’t be quick growth,” and the Central Bank’s recent decision to cut refinancing rates to record lows “isn’t a sign of the country getting stronger,” reports Will Bland for The Wall Street Journal.
The Economy Ministry says Russia’s economy expanded by a seasonally adjusted 0.7% between March and April. A recent survey of the manufacturing industry revealed a slowdown of expansion in May as compared to April.