BOFIT Weekly

• Even as the Chinese economy recovers, performance is still far below pre-coronavirus levels

• China steps up stimulus measures

• Coronavirus crisis hits China’s banking sector

• Mainland China stock markets perform relatively well, still capital is flowing from China

• BOFIT forecasts economic contraction in 2020 for Russia

• After a selective start, Russia moves to beef up economic support

• National Welfare Fund now exceeds 11 % of GDP after transfers of last year’s excess oil and gas tax earnings

• Oil prices, ruble and Moscow stock exchange all down; CBR holds key rate unchanged

• China’s economic output collapsed in the first two months of this year

• Over-leveraged real estate developers feel the pain from China’s housing market fall

• Only a slight decline in Chinese goods imports in January-February

• PBoC resorts to targeted monetary easing

• China’s loan stock growth continued steady in February

• Oil price collapse drives down ruble and Russian stock markets

• Russia’s proposed constitutional amendments allow president Putin to remain in power

• Russian inflation remained moderate

• Russian government sector spending increased rapidly last year; oil price drop changes outlook

• Finnish-Russian trade performed modestly last year

• Early indicators suggest the coronavirus caused Chinese economic activity to collapse in February

• Foreign companies operating in China report difficulties caused by the coronavirus epidemic

• China posts larger-than-expected budget deficit for 2019

• Finnish goods exports to China contracted by 1 % last year

• Central Bank of Russia to sell its controlling stake in Sberbank to the finance ministry

• Sluggish trends in Russian goods trade last year

• Russian crude oil production hits record levels

• LNG drives growth in Russian natural gas production

• China’s efforts to contain the coronavirus epidemic significantly affect business operations

• People’s Bank of China has relaxed monetary policy only moderately to deal with the coronavirus epidemic

• China’s 4Q19 current account surplus shows modest shrinkage

• Increasing number of Chinese provinces failed to hit their growth targets last year

• Effects of the coronavirus on the Russian economy remain limited for now

• Monetary policy easing continues in Russia

• Rosstat reports Russian GDP up 1.3 % in 2019; revises figures for previous years

• Slightly lower growth in Russian bank lending

• Coronavirus epidemic having wide-ranging impacts on Chinese economy

• Hard times continue for the Hong Kong economy

• China’s oil imports set record, but uncertainty over near-term oil demand depresses oil market

• Chinese debt continued to climb last year

• New Russian government to focus on social issues and national projects

• Tepid performance for Russian foreign trade in 2019; capital flows closer to balance

• Russia and Ukraine reach agreement on transit fees for natural gas

• As expected, China hit its economic growth target last year, but slowdown continues

• Thorny issues overlooked in “Phase 1” US-China trade agreement

• EU, US and Japan propose stricter WTO rules on industrial subsidies

• Taiwanese economy thrives despite tense political relations with mainland China

• Russian president holds annual state-of-the-nation address; government resigns unexpectedly thereafter

• Ruble appreciation continues in the first two weeks of this year

• Russian oil fund’s assets doubled last year

• Oil revenues also boost Russia’s foreign currency and gold reserves

• Rosstat predicts a decline in Russia’s population over the next two decades

• China’s central bank eases monetary policy and phases out old benchmark rates

• Yuan depreciated slightly in 2019

• New foreign investment law enters into force in China

• 85 % of China’s energy needs still met with fossil fuels

• Russia posts sluggish 2019 growth performance

• Critical reports from Accounts Chamber on economic forecast that forms basis for Russia’s government budget projections generate questions about budget expenditures

• Sanctions continue to overshadow Russia’s relations with the West