Skip to content
Subscriber Only

Bank of America Seeing Life Signs in Russia's Foundering Economy

  • Capital investment sending postive signal, economist says
  • Templeton, BNP Paribas pull out as investors flee recession
Updated on

Bank of America Corp. is starting to see faint signs of an economic recovery in Russia.

The magnitude of a slowdown in capital investment is easing, while corporate profits have been increasing, a combination that Vladimir Osakovskiy, the bank’s chief economist in Moscow, said could mark a turning point. The country’s recession may have bottomed when gross domestic product shrank 4.6 percent in the second quarter, and considering that company spending will probably drive the recovery, that stabilization is likely to be more important for the broader economy than persistent weakness in consumer demand, he wrote in a report last week.