RUSSIA: FROM EXPORT MARKET TO PRODUCTION LOCATION?
Russia's economy is suffering from the falling oil price, with western sanctions inhibiting the country's economic development. The current magic catchphrase in Russia is import substitution. The state decreed build-up in Russia's own production capabilities is intended to trigger the long overdue structural transformation in the country’s economy. Can this succeed?
EUROPEAN ECONOMY: LACK OF MOVEMENT
The slowdown of the Chinese manufacturing sector and the recession in Russia and Brazil have had a dampening effect on the European economy, although all the signs point to a modest rise in GDP of 1.8 percent for the eurozone in 2016. In mechanical engineering, VDMA researchers predict price-adjusted growth in turnover of 1 percent. But the situation in Europe remains fragile.