CEOs’ Opinions & Prognoses

The Russian economy was very robust before the current crisis took off some steam from its strong growth rate, which is still expected to clock 6-7% in 2008 and 5-6% in 2009, according to official data. The stark exposure of the local economy in general and specific industries in particular to the global financial crisis stemmed from the fact Russia is still lopsidedly dependent on oil money, which is being lost today due to the drastic slumps in major oil dependent foreign countries, notably in the West, and also because some Russian companies recklessly took excessive loans from the international markets, without having the assets necessary to adequately collaterize and/or hedge these financial obligations in crisis without compromising their operations. The crisis calls for the adoption of more prudent fiscal policies and other urgent measures to curtail the negative impacts on the economy and citizens. I must say, however, that the measures already taken by the government and its promise to inject more liquidity into the economy, should that become urgently necessary, are appropriate steps in the right direction.  

Company’s major achievements in 2008

"This crisis calls for the adoption of new and more prudent fiscal policies and other urgent measures so as to curtail the rising negative impacts on the country, its economy and citizens."

Despite the devastating second half of 2008 caused by the escalation of this crisis, I must, however, note that the outgoing year was in general more than successful for me and my company, The Imperial Tailoring Co. Starting from the corporate front, one of our achievements in 2008 was the introduction of 100% Vicuna, the most superior fabrics for suits, first the time in history. Another was the opening of our new offices in Yekaterinburg, while boosting and/or consolidating our positions and scales of operations in Moscow, St. Petersburg and Novorossiysk  (all in Russia), in the former and present capitals of Kazakhstan, respectively, Almaty and Astana, and in Kiev, Ukraine. Also talking about corporate achievements, I also need to note that my company was named among the world’s best Top-10 bespoke tailors.  Personally, I also need to add that I was voted the president of the Indian Business Alliance in one of the most heatedly contested elections in the organization’s history. 

Prognosis for the Russian economy in 2009

This crisis is still in its ascending trajectory, with most of its real negative effects expected to happen in Q1 and Q2 of 2009, notably in March and April. However, it is generally believed that the reverse of these negative trends will start only after August next year. I must say, however, that this is a rather highly positive expectation, which again also depends on the oil prices and other economic fundamentals that will be prevailing both on the domestic and global markets.