Countries on the watch list with plummeting oil prices:
- Venezuela
- Russia
- Jordan
- Lebanon
- Nigeria
- Brazil
- Columbia (added June 1, 2015)
- Mexico (added July 17, 2015)
I was reminded of that list with this story.
The AP is reporting Russia appeals for calm as crisis forces it to cut budget:
Russian government officials appealed for calm on Wednesday after
predicting budget cuts and a further surge in inflation as the country
faces its worst economic downturn in 15 years.
With the currency and economy wilting under the twin blows of Western
sanctions and a fall in the price of oil exports, Finance Minister Anton
Siluanov proposed slashing some 10 percent to most areas of the state
budget.
Many parts of the economy, which
relies heavily on public spending, will be affected, though Russia's
vast military modernization program and spending on infrastructure
reforms will remain untouched as the country tries to reassert its power
in the face of the West.
That
means Russians, who have seen the cost of imports jump as a result of
the fall in the ruble, can expect more increases in the cost of living.
Inflation
could hit an annual rate of 17 percent in the spring, the deputy
economic development minister, Alexei Vedev, was quoted as saying by the
Tass news agency. Last year, inflation was 11.4 percent, the highest
rate since 2008.
Canada is certainly not on the "watch list" -- it ha a more diverse economy than just oil, but
just the same: today the Canadian dollar is worth 84 cents (USA). Three years ago, the Canadian dollar was worth $1.02. That's quite a swing.
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