KHABAROVSK (Pakistan Point News / Sputnik - 26th November, 2018) The timing of the next global economic crisis is difficult to predict, but it is unlikely the next two years, Russian Accounts Chamber Chairman Alexei Kudrin said on Sunday.
"Such crises are very difficult to predict. Everyone expects that success should soon be followed by a fall. The overheating of financial oil and gas markets also accumulates problems. I do not think that such a big crisis is expected in two years, but we can not even predict it a year ahead. We understand that sometime this will happen. I can not say how likely this may come in the near future, but it will definitely happen in the leading states. Emerging markets are more vulnerable in this sense, it may affect us faster or deeper," Kudrin said on air of the Rossiya 1 broadcaster, answering a question about the likelihood of a global crisis.
THe noted that the Russian budget is balanced at an oil price of $50 per barrel.
"We are ready for a slump by as much as $20, but in principle, taking into account the reserves, we can withstand even lower price. This is a serious problem, and our task is to increase non-oil exports," he said.
The practice of creating a financial "safety airbag" is necessary for Russia, Kudrin said.
"For a country like ours, this is necessary. Most importantly, we cannot go into a strong dependence on oil revenues, spend them right away, then when they run out, cut it all again. This can affect the stability of the economy and the course, the social obligations of the state," Kudrin said, answering the whether he changed his opinion about the need for an "safety airbag."
According to Kudrin, privatization proceeds should be directed not for creation of an "airbag," but for covering the current deficit.
