Capital outflow from Russia grew almost threefold
The rate of capital outflow from Russia continues to grow. From January to July 2018 $21.5 billion (compared to $ 8.7 billion in the first seven months of 2017) was exported by Russia’s private sector. From January to August, the capital outflow rose to $ 26.5 billion compared to $ 9.6 billion for the same period last year, according to the report of the Central Bank of Russia.
Thus, in the first eight months of 2018, the total net capital outflow from the private sector was 2.76 times higher than in from January to August 2017. From January to July 2018, the difference was less than 2.5 times compared to the same period of 2017.
Initially, the Central Bank of Russia predicted that the outflow of capital from Russia will be $19 billion in 2018, but the sanctions forced to raise the forecast to $30 billion.
At the beginning of September 2018, the Ministry of Economic Development more than doubled its outlook for capital overflow, from $ 18 billion to $ 41 billion. The Ministry noted that the tightening of the monetary policy of the US Federal Reserve and the strengthening of foreign trade restrictions had a negative impact on investor willingness to invest in developing economies.