Russia’s economy got a nod from Standard & Poor’s when its rating service upgraded the country from negative to stable. What it means for the country’s ETF could be determined in the next year.
The Russian financial system may still need two things to improve its budget and balance sheet: less dependency on oil prices and capital injections, reports Tess Stynes for The Wall Street Journal.
S&P said they still might downgrade Russia if its government fails to implement tight spending control in the next budget cycle. Another upgrade might be in order if the government demonstrates a greater commitment to economic reforms that could stimulate investment inflows.
Meanwhile, Prime Minister Vladamir Putin is happy with the amount of foreign investment that has poured into Russia. A total of $35 billion were put into the Russian economy in the form of direct investments from January to September 2009, reports Itar Tass.
Finance Minister Alexei Kudrin said Wednesday that Russia’s gross domestic product rose 8% for November. Fourth-quarter growth is estimated to be around 2%, reports Natalia Vasilyeva for BusinessWeek. The government has put aside $4.5 billion for an anti-crisis fund, which will allow it to quickly respond to any possible problems in the real economy next year.
- Market Vectors Russia (NYSEArca: RSX): up 136.5% year-to-date