Why Russia could be a gusher for daring investors
High-risk market benefitting from rising oil prices, consumer strengthhttp://www.marketwatch.com/story/why-russia-could-be-a-gusher-for-daring-investors-2012-02-24
The growing interest in Russia comes at a time when oil prices are rising and the country is recovering strongly from the global economic crisis. State statistics agency Rosstat in January reported that the economy grew by 4.3% in 2011, surpassing forecasts. Continued growth is expected in 2012, though at a more subdued rate, as Europe, a major customer of Russian oil, continues to struggle with its sovereign debt crisis.
Russia-focused analysts also point to falling inflation, strong exports and increasing retail sales as reasons to be bullish on the country. Increased demand from the Russian middle class, which is growing in both number and influence, is also bolstering sentiment.
Bank of America Merrill Lynch analysts have even suggested that Russia could be “the next Brazil,” if it considers wooing foreign investors to help develop offshore oil and gas resources, as the South American nation has done in recent years.