Russia GDP to increase 4% in next year

ON EMERGING MARKETS

Jupiter's Elena Shaftan discusses why she is bullish on the long-term investment case for Russia.

In the last few years, Russia has become a short-term investment destination. However, the investment case is changing and improvement in GDP is one indicator of this. After first-half growth of 3.9%, we expect Russia’s GDP to accelerate to 5% for the full year and 5.5% for the following year thanks to a pick-up in retail sales. At the start of the year, the increase in real sales was undermined by inflation.However, the main cause of this inflation was the poor harvest of August 2010, so with the base effect coming into play this August, we expect it to decline. In addition, industri...