The Russian pharmaceutical market is growing rapidly but faces challenges. The healthcare system is underfunded and most Russians cannot afford new drugs. The country also struggles with Soviet-style bureaucracy, political interference, and a weak legal system. However, Russia presents opportunities for drug sales and clinical trials if companies can navigate these challenges.
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Swedbanks Baltic Sea Region Report 2011: Despite gearing down, the Baltic Sea region moves forward – rewarding business opportunities are there to be found!
ETX Capital -From The Floor is a daily briefing and global market report to k...ETX_Capital
UK and European markets surged after global central banks eased funding for European lenders. Mining and banking stocks rallied on the FTSE 100. Other European indices also rose sharply led by banks and automakers. In the US, markets extended gains as central bank intervention boosted sentiment, despite S&P downgrading large US banks. Asian markets are trading higher taking cues from strong Wall Street gains and easing of China's monetary policy.
The OPEC Reference Basket averaged $43.21/b in May, up $5.35 from the previous month. Supply disruptions in Canada, Nigeria, and France tightened the market and supported prices. ICE Brent ended at $47.65/b and WTI at $46.80/b, both gaining over $4. The Brent-WTI spread narrowed significantly. Global demand is expected to seasonally tighten in the second half of the year, though oversupply persists with inventories remaining high.
Global equity markets ended 2010 strongly, boosted by improving investor confidence and positive global growth outlook. In the US, quantitative easing and tax cuts helped improve the economic outlook and sentiment, giving a lift to global markets. European markets struggled with sovereign debt worries, particularly regarding Greece and Ireland. Bond markets were strong initially but weakened later in the year. Commodity prices like gold, oil, and metals increased significantly in 2010. The Canadian dollar rose close to 6% against the US dollar due to global growth and commodity prices. Going forward, volatility is expected to remain as investors take a diversified approach in a gradually improving global economic environment.
Will United States Be The World Leader For Ever ?Kurien Joseph
This document summarizes a study by Goldman Sachs that projected the economies of Brazil, Russia, India and China (BRIC) would overtake the economies of the richest countries by 2050 based on expected GDP growth rates. The study found that by 2050, the combined GDP of the BRIC countries could be larger than the current G6 economies in US dollar terms. It also projected that China would become the world's largest economy by 2041, surpassing the US, and India would surpass countries like Japan and Germany. However, the study notes its projections assume continued supportive policies and institutions in the BRIC countries.
After a solid and broad-based growth for three consecutive years, the world economy is expected to decelerate in 2007, with the growth of world gross product (WGP) moderating to a pace of 3.2 per cent, down from the estimated 3.8 per cent for 2006. The economy of the United States of America will be the major drag for this global slowdown, as its growth is forecast to soften on the back of a weakening housing market to a rate of 2.2 per cent in 2007. No other developed economy is expected to emerge as an alternative engine for the world economy, as growth in Europe is forecast to slow to around 2 per cent and in Japan to below 2 per cent in 2007. There are, furthermore, substantial downside risks associated with the possibility of a much stronger slowdown of the United States economy.
SapForex24 recommend Accurate Forex Trading Signals for International Market. So catch out our FOREX and COMEX signal.
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Swedbanks Baltic Sea Region Report 2011: Despite gearing down, the Baltic Sea region moves forward – rewarding business opportunities are there to be found!
ETX Capital -From The Floor is a daily briefing and global market report to k...ETX_Capital
UK and European markets surged after global central banks eased funding for European lenders. Mining and banking stocks rallied on the FTSE 100. Other European indices also rose sharply led by banks and automakers. In the US, markets extended gains as central bank intervention boosted sentiment, despite S&P downgrading large US banks. Asian markets are trading higher taking cues from strong Wall Street gains and easing of China's monetary policy.
The OPEC Reference Basket averaged $43.21/b in May, up $5.35 from the previous month. Supply disruptions in Canada, Nigeria, and France tightened the market and supported prices. ICE Brent ended at $47.65/b and WTI at $46.80/b, both gaining over $4. The Brent-WTI spread narrowed significantly. Global demand is expected to seasonally tighten in the second half of the year, though oversupply persists with inventories remaining high.
Global equity markets ended 2010 strongly, boosted by improving investor confidence and positive global growth outlook. In the US, quantitative easing and tax cuts helped improve the economic outlook and sentiment, giving a lift to global markets. European markets struggled with sovereign debt worries, particularly regarding Greece and Ireland. Bond markets were strong initially but weakened later in the year. Commodity prices like gold, oil, and metals increased significantly in 2010. The Canadian dollar rose close to 6% against the US dollar due to global growth and commodity prices. Going forward, volatility is expected to remain as investors take a diversified approach in a gradually improving global economic environment.
Will United States Be The World Leader For Ever ?Kurien Joseph
This document summarizes a study by Goldman Sachs that projected the economies of Brazil, Russia, India and China (BRIC) would overtake the economies of the richest countries by 2050 based on expected GDP growth rates. The study found that by 2050, the combined GDP of the BRIC countries could be larger than the current G6 economies in US dollar terms. It also projected that China would become the world's largest economy by 2041, surpassing the US, and India would surpass countries like Japan and Germany. However, the study notes its projections assume continued supportive policies and institutions in the BRIC countries.
After a solid and broad-based growth for three consecutive years, the world economy is expected to decelerate in 2007, with the growth of world gross product (WGP) moderating to a pace of 3.2 per cent, down from the estimated 3.8 per cent for 2006. The economy of the United States of America will be the major drag for this global slowdown, as its growth is forecast to soften on the back of a weakening housing market to a rate of 2.2 per cent in 2007. No other developed economy is expected to emerge as an alternative engine for the world economy, as growth in Europe is forecast to slow to around 2 per cent and in Japan to below 2 per cent in 2007. There are, furthermore, substantial downside risks associated with the possibility of a much stronger slowdown of the United States economy.
Russia's Lost Decade? Challenges to Growth, Recipes for AccelerationAndrey Shapenko
The Russian economy today is going through a critical stage. The growth model, which catapulted the country into the world’s top ten economies’ list has been exhausted and most experts believe that Russia is facing a long period of low or no growth. While the world is moving forward, Russia’s standing still. Hovering anxiously in one place means its economy is becoming smaller and is further increasing its competitive gap.
The ailing economy is often blamed on the falling oil prices combined with the economic sanctions that were imposed on Russia in 2014. However, the array of challenges that the economy is facing today is much broader than that, and the recession in Russia has deeper roots.
This report represents an attempt to discuss those roots and to summarize economic agenda that the country's leadership will face on the way to restart growth, amid the 2018 presidential elections. This agenda will define economic and fiscal policy over the next 5-10 years, and thus will impact anyone who is doing business or going to invest in the country.
The document summarizes market developments in July 2012. Key points include:
1) Global markets gained in July due to expectations that central banks will stimulate the economy. The energy sector led Canadian market gains while defensive sectors outperformed cyclicals.
2) Second quarter US and Canadian GDP growth was weak. US home construction rose to its highest level since 2008 but a sluggish economy could hamper further gains.
3) Volatility continued as the eurozone debt crisis weighed on markets. Sentiment received a boost from ECB commitments but the crisis' resolution remains uncertain.
The document discusses the response of Turkey and Russia after the downing of a Russian jet by Turkey in 2015 and the implications for the South Caucasus region. It analyzes the impact on key sectors like energy, tourism, agriculture and migration. Some of the main points are:
- Russia imposed economic sanctions on Turkey in response, affecting sectors like food, textiles and machinery. Turkey's exports to Russia fell and GDP growth is projected to be 0.3-0.7% lower.
- The visa-free agreement between Russia and Turkey ended, suspending employment of Turkish workers in Russia and changing migration patterns.
- Projects between the two countries like the Turkish Stream gas pipeline and a Russian-built nuclear
QNB’s expects global outlook to be gloomier than the OECDQNB Group
QNB expects a gloomier global economic outlook than the OECD forecasts. The OECD forecasts modest global growth of 3.4% in 2012, led by the US at 2.4%, but QNB sees downside risks from a potential Greek exit from the Eurozone and weak recent economic data. A Greek exit could increase fears about other troubled Eurozone countries like Spain. Additionally, recent data shows weakness in the US, China, India and other global economies. QNB believes the Eurozone crisis and its impact on the world economy will continue intensifying unless governments take significant policy actions to stimulate growth and stabilize the situation.
ETX Capital -From The Floor is a daily briefing and global market report to k...ETX_Capital
The document provides an overview of key global indices and market snapshots from the UK, Europe, US and Asia. UK and European markets slid sharply due to concerns over Europe's debt crisis and downbeat economic data. In the US, markets slumped as bond yields surged in Europe after Germany failed to meet a bond auction target. Most Asian markets are trading higher despite losses in the US, as China takes measures to support businesses and lending.
1. The document discusses global poverty statistics, highlighting that at least 80% of humanity lives on less than $10 per day and the poorest 40% accounts for only 5% of global income.
2. Key facts provided include that 22,000 children die daily due to poverty, 72 million primary-aged children are not in school, and over 1 billion people cannot read or write.
3. Infectious diseases greatly impact the poor, with millions of cases of malaria, HIV/AIDS, and lack of access to water, shelter, and healthcare.
- Major stock markets started 2011 positively, continuing the rally from late 2010, as improving economic data boosted investor confidence.
- Investors favored riskier assets like equities and commodities over traditional safe havens like bonds. Commodity prices rose on strong global growth.
- Canadian and US stock markets rose in January, led by energy sector gains. European markets also rose on positive economic news from Germany.
- Inflation concerns emerged in some emerging markets like China and India, weighing on their stock markets. Geopolitical risks also contributed to volatility.
- While economic fundamentals remain positive, markets may be due for a pause given extended gains, and confidence can remain fragile. Diversification remains important
Critical review opec relations with us and euTunji Busari
Oil plays a crucial role in global politics and economics. The document discusses the relationship between major oil producing countries (OPEC nations like Saudi Arabia, Iraq, Iran, Libya, Nigeria) and Western countries like the US and EU. It explores both the positive and difficult aspects of these relationships. Additionally, it examines how factors like alternative energy sources, economic conditions, and political stability have impacted and reduced OPEC's dominance in global oil markets in recent decades.
Forex and comex daily report 17 june 16vanessa semos
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1) According to an analysis by the OECD, India and China may face economic downturn in the coming months, alongside some developed nations.
2) India created athletics history at the CWG as Poonia won the first ever gold medal for India in discus throw. India swept the event by also winning silver and bronze.
3) Pfizer will acquire King Pharmaceuticals for $3.6 billion in cash to expand its pain drug business.
The document provides an overview of recent political and economic developments in Russia. It summarizes that while EU sanctions against Russia remained in place, tensions have decreased. It also notes that Russia's economy has shown signs of recovery, with falling unemployment, stable inflation, and improving sovereign debt ratings and bond sales. The document concludes by stating that Russian borrowers are in a better position for growth due to stronger credit metrics and a more diversified economy compared to other CIS countries.
Ways2Capital is one of the leading research house across the globe. The company basically provides recommendations for stocks cash & F&O traded in NSE & BSE,commodities including bullions, metals and agro commodities traded in MCX & NCDEX.
Pakistan Oil & Gas - Valuations are Heavily Discounted, (AKD Bluetop Sep 02, ...Asad Siddiqui
The report summarizes that international oil prices are expected to remain in the range of $40-50/barrel in the medium term due to oversupply concerns from increased US production and potential increased supply from Iran if sanctions are lifted. OPEC production remains near historically high levels led by Saudi Arabia, which has maintained its production to preserve market share despite lower prices. The outlook for oil demand also remains weak from China, Europe and sluggish global growth.
1. The document provides an overview of Kazakhstan's financial system, including its monetary, exchange rate, and banking systems. It discusses Kazakhstan's financial markets and performs a SWOT and risk analysis.
2. Some key points are that Kazakhstan adopted a floating exchange rate system in 2015, has abundant natural resources but a resource-dependent economy, and faces political, exchange rate, and sovereign risks.
3. The SWOT analysis notes opportunities in infrastructure development and agriculture exports through China's Belt and Road Initiative, but threats include unsustainable water management and transitioning away from hydrocarbon dependence.
Global equity markets rose in February as investors gained confidence in the U.S. economic recovery and progress was made in resolving Greece's debt crisis. The Canadian market also saw gains, though the materials sector struggled due to rising costs for gold producers. Higher oil prices boosted energy stocks in Canada and posed risks to recovering economies and export competitiveness. Looking ahead, continued issues in Europe and volatility in oil prices may lead to increased short-term market fluctuations.
First Quarter Review of Monetary Policy 2012-13Ankur Pandey
The Reserve Bank of India document provides an overview of the state of the global and domestic economies. Globally, growth is slowing down across major advanced and emerging economies. In the euro area, risks remain from the fiscal and financial stability issues. Domestically, GDP growth is decelerating while inflation remains high. Monsoon rainfall so far has been below average.
Here are the key points from the Central Bank section:
- The central bank has increased the public sector credit growth ceiling to 10.9% for the second half of the fiscal year, up from its previous projection of 8.5%, in light of higher growth in the first half.
- Interest rates on savings certificates offered by the central bank (around 12%) remain significantly higher than deposit rates offered by commercial banks (6-7%).
- The central bank's monetary policy statement projected GDP growth will be between 7.5-8.2% for fiscal year 2018-19.
- A priority is bringing down default loans by ensuring better corporate governance in the financial sector.
Week 7 Discussion - Global Trends for the Future International Bus.docxcockekeshia
This document discusses two options - a stock split or stock dividend - for the Pear Corporation to consider to lower its stock price from over $50 per share to a more normal trading range. As the company's investment banker, the assistant would recommend a stock split because it would lower the stock price directly to allow for more trading volume and flexibility, while also enhancing current shareholder wealth and keeping long-term growth prospects intact. A stock split is generally the best strategy to accomplish all three goals.
Vietnam's Recent Economic Development 2013Quynh LE
This report provides an update on Vietnam's recent economic developments. It summarizes that global growth is stabilizing at a moderate pace, though recovery in industrial production has been uneven across countries. Financial market conditions have improved due to monetary easing, but capital costs for developing countries are rising as risks in high-income countries recede. Inflation remains benign in most countries, prompting further monetary policy easing. Trade growth has slowed after a cyclical rebound, while most commodity prices have weakened in response to increased supply and substitution.
Russia's Lost Decade? Challenges to Growth, Recipes for AccelerationAndrey Shapenko
The Russian economy today is going through a critical stage. The growth model, which catapulted the country into the world’s top ten economies’ list has been exhausted and most experts believe that Russia is facing a long period of low or no growth. While the world is moving forward, Russia’s standing still. Hovering anxiously in one place means its economy is becoming smaller and is further increasing its competitive gap.
The ailing economy is often blamed on the falling oil prices combined with the economic sanctions that were imposed on Russia in 2014. However, the array of challenges that the economy is facing today is much broader than that, and the recession in Russia has deeper roots.
This report represents an attempt to discuss those roots and to summarize economic agenda that the country's leadership will face on the way to restart growth, amid the 2018 presidential elections. This agenda will define economic and fiscal policy over the next 5-10 years, and thus will impact anyone who is doing business or going to invest in the country.
The document summarizes market developments in July 2012. Key points include:
1) Global markets gained in July due to expectations that central banks will stimulate the economy. The energy sector led Canadian market gains while defensive sectors outperformed cyclicals.
2) Second quarter US and Canadian GDP growth was weak. US home construction rose to its highest level since 2008 but a sluggish economy could hamper further gains.
3) Volatility continued as the eurozone debt crisis weighed on markets. Sentiment received a boost from ECB commitments but the crisis' resolution remains uncertain.
The document discusses the response of Turkey and Russia after the downing of a Russian jet by Turkey in 2015 and the implications for the South Caucasus region. It analyzes the impact on key sectors like energy, tourism, agriculture and migration. Some of the main points are:
- Russia imposed economic sanctions on Turkey in response, affecting sectors like food, textiles and machinery. Turkey's exports to Russia fell and GDP growth is projected to be 0.3-0.7% lower.
- The visa-free agreement between Russia and Turkey ended, suspending employment of Turkish workers in Russia and changing migration patterns.
- Projects between the two countries like the Turkish Stream gas pipeline and a Russian-built nuclear
QNB’s expects global outlook to be gloomier than the OECDQNB Group
QNB expects a gloomier global economic outlook than the OECD forecasts. The OECD forecasts modest global growth of 3.4% in 2012, led by the US at 2.4%, but QNB sees downside risks from a potential Greek exit from the Eurozone and weak recent economic data. A Greek exit could increase fears about other troubled Eurozone countries like Spain. Additionally, recent data shows weakness in the US, China, India and other global economies. QNB believes the Eurozone crisis and its impact on the world economy will continue intensifying unless governments take significant policy actions to stimulate growth and stabilize the situation.
ETX Capital -From The Floor is a daily briefing and global market report to k...ETX_Capital
The document provides an overview of key global indices and market snapshots from the UK, Europe, US and Asia. UK and European markets slid sharply due to concerns over Europe's debt crisis and downbeat economic data. In the US, markets slumped as bond yields surged in Europe after Germany failed to meet a bond auction target. Most Asian markets are trading higher despite losses in the US, as China takes measures to support businesses and lending.
1. The document discusses global poverty statistics, highlighting that at least 80% of humanity lives on less than $10 per day and the poorest 40% accounts for only 5% of global income.
2. Key facts provided include that 22,000 children die daily due to poverty, 72 million primary-aged children are not in school, and over 1 billion people cannot read or write.
3. Infectious diseases greatly impact the poor, with millions of cases of malaria, HIV/AIDS, and lack of access to water, shelter, and healthcare.
- Major stock markets started 2011 positively, continuing the rally from late 2010, as improving economic data boosted investor confidence.
- Investors favored riskier assets like equities and commodities over traditional safe havens like bonds. Commodity prices rose on strong global growth.
- Canadian and US stock markets rose in January, led by energy sector gains. European markets also rose on positive economic news from Germany.
- Inflation concerns emerged in some emerging markets like China and India, weighing on their stock markets. Geopolitical risks also contributed to volatility.
- While economic fundamentals remain positive, markets may be due for a pause given extended gains, and confidence can remain fragile. Diversification remains important
Critical review opec relations with us and euTunji Busari
Oil plays a crucial role in global politics and economics. The document discusses the relationship between major oil producing countries (OPEC nations like Saudi Arabia, Iraq, Iran, Libya, Nigeria) and Western countries like the US and EU. It explores both the positive and difficult aspects of these relationships. Additionally, it examines how factors like alternative energy sources, economic conditions, and political stability have impacted and reduced OPEC's dominance in global oil markets in recent decades.
Forex and comex daily report 17 june 16vanessa semos
SapForex24 recommend Accurate Forex Trading Signals for International Market. So catch out our FOREX and COMEX signal.
Read More:- http://www.sapforex24.com/
1) According to an analysis by the OECD, India and China may face economic downturn in the coming months, alongside some developed nations.
2) India created athletics history at the CWG as Poonia won the first ever gold medal for India in discus throw. India swept the event by also winning silver and bronze.
3) Pfizer will acquire King Pharmaceuticals for $3.6 billion in cash to expand its pain drug business.
The document provides an overview of recent political and economic developments in Russia. It summarizes that while EU sanctions against Russia remained in place, tensions have decreased. It also notes that Russia's economy has shown signs of recovery, with falling unemployment, stable inflation, and improving sovereign debt ratings and bond sales. The document concludes by stating that Russian borrowers are in a better position for growth due to stronger credit metrics and a more diversified economy compared to other CIS countries.
Ways2Capital is one of the leading research house across the globe. The company basically provides recommendations for stocks cash & F&O traded in NSE & BSE,commodities including bullions, metals and agro commodities traded in MCX & NCDEX.
Pakistan Oil & Gas - Valuations are Heavily Discounted, (AKD Bluetop Sep 02, ...Asad Siddiqui
The report summarizes that international oil prices are expected to remain in the range of $40-50/barrel in the medium term due to oversupply concerns from increased US production and potential increased supply from Iran if sanctions are lifted. OPEC production remains near historically high levels led by Saudi Arabia, which has maintained its production to preserve market share despite lower prices. The outlook for oil demand also remains weak from China, Europe and sluggish global growth.
1. The document provides an overview of Kazakhstan's financial system, including its monetary, exchange rate, and banking systems. It discusses Kazakhstan's financial markets and performs a SWOT and risk analysis.
2. Some key points are that Kazakhstan adopted a floating exchange rate system in 2015, has abundant natural resources but a resource-dependent economy, and faces political, exchange rate, and sovereign risks.
3. The SWOT analysis notes opportunities in infrastructure development and agriculture exports through China's Belt and Road Initiative, but threats include unsustainable water management and transitioning away from hydrocarbon dependence.
Global equity markets rose in February as investors gained confidence in the U.S. economic recovery and progress was made in resolving Greece's debt crisis. The Canadian market also saw gains, though the materials sector struggled due to rising costs for gold producers. Higher oil prices boosted energy stocks in Canada and posed risks to recovering economies and export competitiveness. Looking ahead, continued issues in Europe and volatility in oil prices may lead to increased short-term market fluctuations.
First Quarter Review of Monetary Policy 2012-13Ankur Pandey
The Reserve Bank of India document provides an overview of the state of the global and domestic economies. Globally, growth is slowing down across major advanced and emerging economies. In the euro area, risks remain from the fiscal and financial stability issues. Domestically, GDP growth is decelerating while inflation remains high. Monsoon rainfall so far has been below average.
Here are the key points from the Central Bank section:
- The central bank has increased the public sector credit growth ceiling to 10.9% for the second half of the fiscal year, up from its previous projection of 8.5%, in light of higher growth in the first half.
- Interest rates on savings certificates offered by the central bank (around 12%) remain significantly higher than deposit rates offered by commercial banks (6-7%).
- The central bank's monetary policy statement projected GDP growth will be between 7.5-8.2% for fiscal year 2018-19.
- A priority is bringing down default loans by ensuring better corporate governance in the financial sector.
Week 7 Discussion - Global Trends for the Future International Bus.docxcockekeshia
This document discusses two options - a stock split or stock dividend - for the Pear Corporation to consider to lower its stock price from over $50 per share to a more normal trading range. As the company's investment banker, the assistant would recommend a stock split because it would lower the stock price directly to allow for more trading volume and flexibility, while also enhancing current shareholder wealth and keeping long-term growth prospects intact. A stock split is generally the best strategy to accomplish all three goals.
Vietnam's Recent Economic Development 2013Quynh LE
This report provides an update on Vietnam's recent economic developments. It summarizes that global growth is stabilizing at a moderate pace, though recovery in industrial production has been uneven across countries. Financial market conditions have improved due to monetary easing, but capital costs for developing countries are rising as risks in high-income countries recede. Inflation remains benign in most countries, prompting further monetary policy easing. Trade growth has slowed after a cyclical rebound, while most commodity prices have weakened in response to increased supply and substitution.
Global growth was subdued at 2.1% in 2013 but is expected to improve to 3.0-3.3% in 2014-2015. Inflation remains low worldwide due to excess capacity and unemployment. Unemployment remains high, especially in Europe, with rates over 25% in Greece and Spain. International trade growth weakened to 2.3% in 2013 but is projected to rise to 4.6-5.1% in 2014-2015. Capital flows to emerging markets declined in 2013 and volatility increased due to tapering of US monetary stimulus. Risks to the outlook include a disorderly exit from quantitative easing and slowing growth in large emerging markets.
Global economies are witnessing two-speed recovery with the US economy showing firm signs of recovery, while growth in Euro Area still languishing in sub-optimal territory. Among the Asian economies, growth in Japan and China too continues to remain tepid. We discuss this in detail in the section on Global Trends in this month’s issue of Economy Matters. In the section on Domestic Trends, we analyze that the economic condition in the present scenario is in greater disarray than it was during the breakout of the global financial crisis of 2008-09, when both government as well as the RBI were quick to respond to the challenges and brought the economy back to recovery path within no time. In Corporate Performance, we examine the sectoral performance in the last fiscal in order to find the sectors which were badly hit in the wake of the current bout of economic crisis. The Sectoral spotlight for this issue is on Agriculture, a traditionally important sector of the Indian economy because of its enormous contribution in being the provider of basic source of livelihood to the most of the population in India. However in the recent past various challenges such as low agricultural yield, declining share of public investment, and lack of technological advancements have plagued the sector. We discuss the sector’s challenges and suggest measures to bolster its output. In the Special Article, we discuss India's deteriorating external position in the last few years, manifesting itself in a steady deterioration in the current account which slipped from a surplus at the start of the last decade to a huge deficit of 4.8 per cent in 2012-13. Bulk of the deterioration in current account is attributable to the sharp rise in merchandise trade deficit over the last decade. Ultimately, for India to contain its current account deficit at a more sustainable level of 2.0-2.5 per cent of GDP, it is essential that we ensure competitiveness of our goods and services, so that our imports are contained and exports boosted.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
This document provides a summary of the global economic outlook and trends for retailers to consider. It discusses slowing economic growth in many leading markets in 2012. In Europe, government spending cuts and debt issues are weakening economies and confidence. In the US, uncertainty around fiscal policy is hurting markets. China is also slowing after monetary tightening. Some positives for retailers include potential margin improvements from lower commodity prices and inflation in some countries. Long term global growth prospects remain strong, especially in emerging markets.
This document provides an analysis of global economic growth prospects in the first quarter of 2015. It discusses that while many observers are pessimistic about global growth, the outlook is actually healthier than believed. Key points made include:
- Lower oil prices will provide a significant boost to global growth by acting as a tax cut for consumers and reallocating capital to other industries.
- The US recovery is strong, with robust GDP growth and improving labor market conditions adding to consumption.
- China will benefit from lower oil prices and its economy remains on track for healthy growth.
- The eurozone outlook is stronger than expected, aided by monetary easing and weaker euro supporting exports.
- Overall global growth is expected to be
The World Bank's Global Economic Prospects report projects weaker global economic growth in 2012 and 2013 due to significant downside risks and uncertainties from the ongoing financial crisis in Europe. Global GDP growth is expected to slow to 2.5% in 2012 and 3.1% in 2013, down from previous forecasts. High-income country growth will be particularly weak, especially in the Eurozone, while developing country growth is also projected to decline. Ongoing financial market tensions could trigger broader financial crises with further negative impacts on the global economy. Significant policy measures have been taken in Europe to address immediate issues, but long-term solutions are still needed to resolve the region's fiscal challenges and restore stability and confidence.
This document provides an analysis of whether the BRICS nations (Brazil, Russia, India, China and South Africa) are still the key drivers of global economic growth. It notes that while the BRICS saw unprecedented growth in the 2000s, capturing a growing share of global GDP, their growth rates have significantly slowed in recent years. It suggests several factors that indicate the BRICS may continue growing but cannot recreate the same remarkable growth of the past. These include less potential for catch-up growth as incomes rise, aging populations, and challenges facing each BRICS economy. Alternative emerging markets like the "N11" could see strong growth but are unlikely to replace the BRICS as the main growth engine of the world.
1) Global growth is expected to be 2.5% in 2015 and 2.7% in 2016, which is weak for a recovery period and low over a prolonged period.
2) Unfavorable economic fundamentals such as low productivity growth, aging populations, high debt levels, and slowing world trade contribute to weak global growth prospects.
3) Risks to the global outlook include adverse market reactions to anticipated Federal Reserve rate hikes and a sharper slowdown in China that could negatively impact other emerging markets.
In the second quarter of 2010, global economic growth showed signs of moderating which drove investors to shift assets into safe havens like government bonds, the US dollar, and gold. Concerns over fiscal tightening in Europe, policy changes in China, and weaker US economic data contributed to the more risk-averse investor sentiment. The Canadian market declined in the quarter but outperformed other developed markets, led higher by gold stocks, while cyclical sectors tied to global growth fared worst.
The document provides an economic update and outlook for various regions and countries. It discusses recent economic data releases and performance of key markets. Some of the main points covered include:
- US economic data mostly met or exceeded expectations, suggesting continued recovery. However, valuations remain high after strong gains.
- UK and eurozone data was mixed but in line with forecasts. Further significant gains are unlikely.
- Chinese manufacturing PMI missed targets, indicating possible slower growth. Brazil inflation lower than expected.
- Markets showed divergent performance in March. Developed markets gains offset by overvaluation concerns. Asian markets dragged down by domestic issues in China and other factors.
- Overall a positive long-
Quarterly Report. Perspectives on Global and Spanish economy Q2-2019Círculo de Empresarios
The main international organisations (IMF, OECD, European Commission, etc.) continue to downgrade their growth expectations in light of the new geopolitical and economic scenario. Q1 2019 has been marked by the darkening economic outlook, the waning confidence of the private sector, and the mounting global uncertainty, which is at record levels of 2016, mainly due to the impact of trade tensions between the US and China, the fears associated with Brexit, the weakening of the multilateral trade, the lack of leadership, and the rise of populism.
Globally, the slowdown in growth is confirmed, although better prospects are maintained for 2020. In advanced economies, there is a less robust & synchronised progress, symptoms of nearing the end of the expansion phase of the business cycle, and the US & euro area economies are decoupling. The US maintains a growth rate of over 2% per year & an unemployment rate at record lows, although the expansionary effect of its fiscal policy is beginning to subside. On the other hand, there is less dynamism in the EU, mainly due to the weakness of the German industry, the political & economic fragility of Italy, and the institutional crisis of the United Kingdom stemming from the indetermination of the final agreement of the Brexit.
Macroeconomic imbalances persist in emerging countries, mainly in Turkey and Argentina, given their high debt levels, and the evolution of their growth & inflation rates. All this in a context contingent on the monetary policy of the main central banks, the evolution of oil price & other raw materials, the trade war, and lower profits margins.
View more documents https://circulodeempresarios.org/en/coleccion/informe-trimestral-en/
Global Economy Watch correspondiente al mes de mayo, donde se analiza la mejora de la economía estadounidense y el consiguiente fin de la política monetaria expansiva.
Etude PwC Global Economy Watch (mai 2015)PwC France
Selon la dernière étude « Global Economy Watch » du cabinet d’audit et de conseil PwC, les créances libellées en dollars américains, émises hors des Etats-Unis, ont fortement augmenté au cours de ces dernières années, passant de 6 000 milliards de dollars avant l’instauration des premières mesures d’assouplissement quantitatif en novembre 2008 à environ 9 000 milliards en 2014.
The World In 2025 Analyzing NIC Predictionsnbelarbi
This article provides a general analysis of some topics mentioned in the last National Intelligence Council report on the World in 2025. A focus is made on China’s potential, US challenges and the way to maintain the US leadership.
The document provides an overview and analysis of the global economic outlook by the IMF staff. It finds that:
1) Global economic activity has fallen sharply, with advanced economies experiencing their worst declines since World War 2.
2) The IMF forecasts that the global economy will contract by 0.5-1% in 2009 on average before a gradual recovery in 2010.
3) Turning the global economy around depends critically on concerted policy actions to stabilize financial conditions and support demand through fiscal and monetary policies.
1. The Russian
Federation
Prescription for growth*
Part 5: The Russian pharmaceuticals
market is growing very fast, and the
clinical trials sector is booming. But any
company that wants to do business there
faces considerable challenges
*connectedthinking
2. The pharmaceuticals market in the Russian Federation is growing very rapidly,
with six consecutive years of economic growth and a corresponding rise in living
standards. But the state-run healthcare system is seriously under-funded and most
Russians cannot afford the best new drugs. Moreover, the country still suffers from
Soviet-style management practices; political interference remains a real risk; and the
administrative and legal system is very weak. Russia thus offers genuine opportunities
both for selling and testing pharmaceuticals, but these opportunities come with some
substantial challenges.
3. The pharmaceutical industry’s So where should the industry performance – which prompted the growth in the third quarter of 2004. But,
main markets are under serious leaders look next? Analysis by major ratings agencies to raise the with crude oil exports bringing in over
pressure. North America, Europe PricewaterhouseCoopers shows that country’s sovereign credit rating to BBB- $500 million a day, it is now back on
several regions offer considerable (investment grade) at the start of 2005 track. PwC Macro Consulting estimates
and Japan jointly account for potential, either as areas with untapped – has been fuelled primarily by energy that the economy will increase by 6.0% in
more than 82% of total global demand for innovative drugs or as exports. Russia possesses huge coal 2006, and that it will rise by another 5.5%
pharmaceutical sales – which suitable places for conducting research and natural gas reserves. It is also rich in 2007 – more than in any country except
reached US$ 602 billion in 2005, and development (RD). In our fifth article in non-fuel minerals such as iron ore, China and India (see Figure 1).
according to IMS Health. But we shall focus on the Russian Federation. manganese, chromium, nickel, platinum
North America and Europe are and titanium. If it can overcome its current difficulties,
Russia’s long-term economic potential
experiencing quite sluggish However, several factors have impeded may be even greater. US investment
growth; sales rose 5.2% in the its transition from Communist heartland bank Goldman Sachs has identified it
former and 7.1% in the latter. And
Russia’s strong economic
to modern industrialised state. Soviet- as one of the four biggest developing
though the Japanese market saw performance era management practices are still economies (together with Brazil, India
its highest year-on-year increase widespread and the infrastructure and China), and estimates that real GDP
since 1991, with sales rising 6.8%, The Russian economy has been requires substantial investment. Higher will grow by between 4.8% and 1.9% a
growing rapidly. In 2004, real gross marginal tax rates in the oil industry and year for the next 45 years. Should this
this was still a much slower rate domestic product (GDP) rose 7.2%, higher production costs, as a result of happen, Goldman Sachs predicts that
of growth than various emerging marking the sixth consecutive year rapidly rising wages and the appreciation Russia could overtake Italy in 2018,
countries experienced. of economic expansion. The federal of the rouble, have also taken their toll. France in 2024, the UK in 2027 and
budget ran a record surplus of 4.2% Germany in 2028 – making it the world’s
and inflows of foreign direct investment All these problems contributed to a sixth-largest economy, measured by GDP
peaked at $9.4 billion. This remarkable marked slowdown in Russia’s economic (see Figure 2).
Figure 1: The Russian economy is expected to grow more rapidly than the economies of almost every other Figure 2: Russia could become the world’s sixth largest economy by 2050
country in the world
*GDP for India refers to fiscal years beginning 1st April
Source: PwC Macro Consulting Source: Goldman Sachs, “Dreaming with BRICS: The Path to 2050”
4. Higher living standards but Furthermore, although living standards regularly participate in sports or fitness- over one million and the United Nations
have improved, the health of the nation related activities; hence the fact that Development Fund reports that the rate
shorter lives has deteriorated significantly since the the mortality rate from cancer and heart of infection is amongst the highest in
break-up of the Soviet Union in 1991. Life disease is much higher in Russia than the world.
Russia’s economic strength has already expectancy at birth is now just 65 years it is in many other transitional countries
boosted living standards. Goskomstat, – a full decade less than it is in many (see Figure 4). Alcohol abuse is another The effect on the Russian population
the State Statistics Service, reports that developed countries – while the infant major problem and health experts believe is already visible; it has fallen from 147
between 2001 and early 2005 the average mortality rate is three times higher than that it accounts for half of all accidents million to 143 million over the past
dollar wage tripled from $79 to about it is in the EU or US. The discrepancy – the second leading cause of death. 16 years, even with surging levels of
$240 per month, while the proportion of between the life expectancies of men The number of people killed in traffic immigration from former Soviet states.
the population living below subsistence and women is especially notable; at accidents, for example, is almost the But the long-term impact could be far
level fell from 28.9% to 17.8%. But GDP 59 years and 72 years respectively, same as it is in the US, a country with worse. Goskomstat predicts that, if
per capita (adjusted for purchasing power these are the lowest figures and largest 100 times as many cars on the road. current trends continue, the population
parity) is still much lower than it is in the difference by sex for the population of could plummet to just 80 million by 2050.
US and EU, including many of the new any country reporting to the World Health The prevalence of infectious diseases
member states (see Figure 3). Organisation (WHO). is also on the rise. Russia ranks 11th
on the WHO’s list of 22 countries with a
The gap between rich and poor is also The stress generated by the economic high incidence of tuberculosis; Hepatitis A healthcare system under
considerable. In the first half of 2005 and social upheaval of the past 15 years C from intravenous drug use is growing
the wealthiest 10% of the population has played a big part in this decline, rapidly; and the spread of HIV/AIDS is huge strain
received 29.6% of the country’s total compounding the adverse effects of even more alarming. According to official
income, while the poorest 10% received widespread smoking, a diet high in statistics, there were 300,000 cases Despite all these problems, Russia’s
only 2%. Indeed, according to Forbes animal fats and lack of exercise. An of HIV in early 2005, but independent expenditure on public healthcare has
magazine, Russia has more billionaires estimated 67% of Russian men and 33% estimates put the actual number of been dropping. Government financing
than any other country except the US. of Russian women smoke, while only 6% people infected with the disease at of the state-run, free-for-all system
Figure 3: GDP per capita in 2004 is lower in Russia than it is in many Western countries Figure 4: The mortality rate from chronic diseases is much higher in Russia than it is in other transitional
countries
Source: World Health Organisation
Note: Age-standardised death rates from chronic disease (per 100,000)
Source: CIA World Factbook by country for ages 30-69 years, estimates for 2005
5. has shrunk by more than a third since private health insurance than to pay the major changes to the social protection
Soviet times; in 2004, for example, it equivalent in wages. Private healthcare system with the signing of Law #122-FZ Changes to the social
was just 2.8% of GDP, roughly half the is also expensive, since it is largely (see sidebar on Changes to the social
level many developed countries invest. supplied by inefficient public facilities. protection system). protection system
Moreover, the system is badly organised, So private schemes will probably remain
with the result that much of the money the preserve of the wealthy for many Law #122-FZ came into
it consumes goes on maintaining a vast years to come. effect on 1 January 2005.
network of hospitals rather than providing A small but fast-growing It replaced a number of
primary care. And because funding is The federal government is also making
largely regional – there are 89 regions visible efforts to address the worst of pharmaceuticals market existing social subsidies
– standards vary widely from one area to the problems in the public sector. It has and guarantees to certain
another; some rural hospitals have no hot lifted funding for the healthcare system to For obvious reasons, then, Russia categories of the population,
water, while some have no running water $3.6 billion this year – an 89% increase still spends relatively little on including victims of
at all. on the $1.9 billion it allocated in 2005. It pharmaceuticals. IMS Health estimates Chernobyl and war veterans,
has also proposed a number of reforms, that, in 2005, the market was worth
with cash benefits. It also
The vast majority of Russian patients such as switching to direct financing just $3.74 billion. That said, the market
therefore have to dip into their own of medical services; reducing the free has increased substantially since the transferred responsibility for
pockets to cover their medical costs, medical assistance guaranteed by the economic crisis of 1998 and is now compensating those who
since the government reimburses state; closing down a large number of one of the fastest-growing in Europe. were previously entitled
less than 30% of expenditure on hospitals; emphasising primary care; and Between 2000 and 2004, sales of to subsidised healthcare
pharmaceuticals. They are also routinely increasing doctors’ salaries by paying pharmaceutical products more than and drugs from the federal
forced to bribe medical staff to obtain them for the treatments they dispense tripled. Currency fluctuations played a
government to the regional
services which are supposed to be free rather than the hours they spend at part in the rise, but the market still more
of charge. Research conducted by the a desk. These reforms have yet to be than doubled in constant dollar terms authorities. The government
INDEM Foundation, one of Russia’s implemented (and some of them may (see Figure 5). This upward trend is allocated $1.8 billion for
leading non-governmental organisations, prove quite difficult to introduce), but the expected to continue; sales are forecast funding this new programme,
suggests that in 2004 Russians spent government has already made several to increase by about 10% a year between which covers 14 million
about $400 million on such under-the- people and more than 2,300
counter payments (compared with $600 Figure 5: The Russian pharmaceuticals market has been growing steadily for the past six years medicines, in 2005. But
million the previous year).
industry experts question
The weaknesses of the state healthcare whether this will be enough
system have driven an increasing number to redress the lack of public
of people into the private sector, although funding for medical treatment
health insurance is still relatively rare. and drugs.
State insurance company Rosgosstrakh
reports that premiums on optional health
insurance reached 38.8 billion roubles
($1.1 billion) in 2004 – up 25% from 2003
– and predicts that the market will grow
by 13-16% a year for the next few years.
However, corporate policies account for
more than four-fifths of all premiums,
because it is often more economically
advantageous for companies to offer Source: IMS Health
6. 2006 and 2010, on the back of rising which passed a first reading in the State unlike China, India or large parts of Latin percentage than in any other market
incomes, greater government expenditure Duma, would have required doctors to America, Russia does not have a history except China (see Table 2). In the US,
and improvements in distribution. use international non-proprietary names of using competing alternative therapies. UK, France, Mexico, Hungary and
and given pharmacists responsibility In 2004, for example, treatments for high Czech Republic, by contrast, the share
Generics currently account for the lion’s for deciding whether to dispense a blood pressure and cardiac therapies held by the top 10 companies is more
share of the market – particularly in the branded product or generic equivalent. accounted for 6.4% of retail pharmacy than 50%.
hospital sector, which generates 20% of But it was opposed on various grounds sales and 2.5% of hospital sales,
all pharmaceutical sales. Indeed, 78% of and subsequently seems to have sunk while psychoanaleptics accounted Sanofi-aventis leads the way; Russia
the 13,000-odd drugs that are registered without trace. for 3.6% and 3.3% respectively (see is one of its main markets for over-the-
in Russia are generics. However, the Table 1). Demand for drugs for cancer, counter (OTC) drugs. But Novartis is
retail sector, which accounts for the At present, then, the market for branded AIDS and diabetes is likewise on battling hard to catch up. Sandoz, its
remaining 80% of sales, also features products is still quite strong, and the the rise. The potential for low-cost generics arm, reported sales growth
more expensive branded products and is majority of those drugs come from generics producers and for Western of more than 30% in Russia between
growing much more rapidly. overseas suppliers. Russia imported manufacturers operating at the top end January and September 2005, under the
more than 60% of all the pharmaceuticals of the market is thus greater than the supervision of Metod Dragonja, former
Concerns about the increasing it used in 2004 – nearly two-thirds of initial picture might suggest. chairman of Lek. Servier has also been
amount of money consumers spend them from companies in Western Europe, expanding its Russian presence over
on drugs prompted the introduction of the US, Canada and Japan. Demand for The market is also ripe for consolidation. the last few years. It sells six of the top
a controversial bill to enforce generic new treatments for chronic diseases and The top 10 companies account for 100 prescription drugs and increased its
prescribing in July 2005. The measure, stress is particularly pronounced and, just 32.5% of sales – a much lower share of the retail pharmacy market from
2.2% to 2.9% (measured by value) in
2004, while Menarini leapt to first place,
Table 1: Top 10 anatomical therapeutic chemicals by Table 2: The top 10 companies account for less than a third of sales
with 3.7%.
sales value
ATC group Share in pharmacy sales, %
2004 sales ($m) Growth, US$ % Growth, constant % of market
2003 2004
currency %
Limited domestic production
Antibacterials for systemic use 6.4 6.9 Total Russia 3069 45 36 100.00
Analgesics 5.7 6.5 sanofi-aventis 203 47 38 6.6
In fact, local production is now quite
Vitamins 4.9 5.2 Novartis 137 53 44 4.5
limited. During the Soviet era, Russia’s
Agents acting on the 3.9 4.0 Servier 113 66 57 3.7 pharmaceutical industry was under
Rhenin-Angiotensin system Gedeon Richter 106 41 33 3.5 federal control and supplied 70% of
Psychoamaleptics 3.6 3.7 Menarini 105 84 73 3.4 the country’s needs. Today, most of the
Cough and cold preparations 3.4 3.5 Pfizer 88 48 40 2.9 700-odd domestic drug manufacturers
Sex hormones and modulators 3.2 2.9 Krka 66 41 32 2.2 focus exclusively on the production of
of the genital system generics. The relatively low prices of
Valeant 64 38 30 2.1
Antiinflammatory and 3.0 2.7 such products, compared with imports,
GlaxoSmithKline 61 21 14 2.0
antirheumatic products explains why, according to research
Roche 54 56 47 1.8 conducted by DSM Group, domestic
Immunomodulationg agents 2.9 2.5
Cardiac therapy 2.5 2.6
Top 10 997 32.5 production accounted for 69% of sales
Total Others 2072 42 34 67.5 measured by volume, but only 25% of
39.3 40.5
sales measured by value, in the first half
Source: AIPM-RMBC Market Bulletin of 2005.
(February 2005) Source: IMS Health
7. The variable quality of domestic drug expanded into pharmaceuticals with CenterWatch reports that there were However, any company conducting
production is a major problem. Many the purchase of a majority stake in the 523 new trial starts in 2004, including clinical trials in Russia must overcome
companies economise on raw materials, Moscow-based Akrikhin. 252 international studies, 167 local several serious obstacles. Language
for example. Indeed, some industry studies of local or international products is one major barrier. All study-
experts estimate that only 15% source and 104 bioequivalence studies. This related documents usually need to
directly from manufacturers; the rest buy represents a 118% increase on the total be translated into Russian because
their materials from offshore sources An under-funded number of trials started five years ago. the study personnel lack sufficient
and the quality of such materials is often The number of international studies has English – and this presents the added
inferior or the expiry date is imminent. research base risen an even more significant 136% over challenge of using the Cyrillic alphabet.
Most Russian drug makers also lack the same period. There is also a shortage of trained and
modern manufacturing facilities – and If domestic pharmaceutical production experienced local staff to manage trials
though the government introduced a new has suffered since the end of the The introduction of Good Clinical in some parts of the country.
national standard for good manufacturing Communist era, so has medical research; Practice (GCP) regulations in 1999
practices (GMP) with effect from January chronic under-funding has eroded the accounts for much of the surge. But,
2005, it will take them a number of years country’s formerly strong scientific base. like other transitional countries, Russia
to comply with the rules. In 1992, Russia employed about 900,000 has several additional advantages. The Distribution and retailing
researchers in military, medical and other patient population is treatment-naïve and
Yet, despite the relative lack of domestic forms of research. By the start of the keen to participate in clinical trials, for
production, very few multinationals millennium, it employed just 450,000 example, because this is the only way As clinical development becomes easier,
currently have manufacturing operations researchers – of whom only about most people can secure access to new so the distribution network is also
in Russia – although there are signs that 100,000 spent more than half their time drugs and high standards of medical improving. It is still quite fragmented;
this may soon change. In a survey of the exploring new terrain. care. They are also easier to reach than there are an estimated 4,000 registered
leading foreign manufacturers recently patients in countries where primary care distributors, ranging from national and
conducted by PwC and the Association However, a few centres of excellence plays a much larger role (see Table 3). regional firms to niche operations which
of International Pharmaceutical have survived and the country still In large cities such as Moscow and specialise in particular products or
Manufacturers (AIPM), 33% said that they retains a strong position in certain St Petersburg (with populations of 8.3 working with particular manufacturers.
were thinking about establishing their therapeutic areas such as immunology million and 4.6 million respectively), most
own production facilities in Russia within and virology. In 2004, for example, patients are seen at the big teaching Table 3: Medical resources in Russia (2004)
the next two or three years, and 19% Biomed launched Affinoleukin, a new hospitals. But even in less urban areas,
said that they were thinking about doing active substance that boosts the cellular healthcare is provided primarily through
so within the next five years – largely immunity of patients suffering from specialist medical centres.
because they are concerned about the persistent bacterial or mycotic diseases. Number of physicians per 10,000 population 48
competition or keen to expand their Shekovsk Vitamins launched a second The Russian government has also taken
Number of medium-level medical
regional cover. new active substance – a nootropic drug a number of steps to open its health personnel per 10,000 population 109
called Phenotropil. system to foreign clinical research and
Several generics manufacturers reduce the bureaucracy. And since many Number of hospital beds per
have also acquired local facilities. In doctors earn less than $100 a month, 10,000 population 113
January 2005, for example, Germany’s they are often eager to supplement their
Number of medical institutions providing
STADA Arzneimittel beat off several Clinical development incomes by working as investigators
outpatient care per 10,000 population 22
other suitors with an €80m-€85m bid or even as clinical research assistants.
for Nizhfarm, Russia’s fourth-largest Lastly, the cost savings are considerable; Capacity of polyclinics (visits per shift)
pharmaceutical producer. Similarly, Though Russia’s pure research base the clinical fees element in the overall per 10,000 population 251
Health Tech Corporation (the holding may have been decimated, it is rapidly cost of a trial may be as much as 50%
company behind a Cypriot firm which becoming an increasingly attractive less than it is the West. Source: Goskomstat
makes biologically active food additives) place in which to conduct clinical trials.
8. But only 700 of these firms are major Intelligence and Remedium suggests Organisation (WTO), with which it
Import tariffs players, and the sector is consolidating that OTC drugs currently constitute is actively negotiating to become a
rapidly. The top three distributors – CV about 35% of total pharmaceutical member. The new code simplified the
Protek, SIA International and Shreya sales, although the average unit price is customs process and established a
Russia revised its tariff Corporation – now control 40% of just $0.68. comprehensive list of documents and
system in January 2001. the market. data required for the customs clearance
Under the current regime, of goods. However, it has not yet been
some medicines are exempt The leading distributors wield fully implemented and some customs
from customs duties. Tariffs considerable power. SIA International Red tape facilities have been slow in making the
has just bought a stake in three shift to new procedures (see sidebar on
otherwise range from 5%
manufacturing plants run by the Pharm Import tariffs).
to 20%, depending on Center Group, which specialises in the The Russian pharmaceuticals market has
whether the product being production of antibiotics, for example. more promise than might first seem the The import licensing procedure
imported constitutes raw Similarly, CV Protek has invested in case, then. Yet Russia is by no means an can likewise be quite burdensome.
materials, semi-finished several facilities for producing generics easy country in which to trade. The old Import licences and activity licences
goods, foodstuffs or finished and a number of pharmacy chains. Soviet system has been comprehensively are required for all pharmaceuticals,
dismantled, but the administrative, and the licensing requirements are
products. Value Added Tax
This interest in the retail sector reflects tax and legal framework is still very very broad and often confusing. In
(VAT) is also applied to almost the speed at which it is expanding; inefficient. December 2002, the Russian Ministry
all imports at the current Russia now has more than 20,000 of Health also established a mandatory
rate of 18% – although there pharmacies and about 5,000 smaller In January 2004, for example, Russia conformity assessment scheme, which
is a fixed rate of 10% for outlets such as kiosks, over 40% of introduced a new Customs Code duplicates some of the other certification
pharmaceuticals and medical which are privately owned. But it is also to bring its customs regimes and requirements. The ministry intended to
a way of capturing a share of the OTC procedures more closely into line with replace this scheme with self-certification
equipment.
market. Research from Espicom Business the requirements of the World Trade in 2004, but it has not yet issued any
new guidelines.
Figure 6: Deterrents to production in Russia
The bureaucratic challenges are even
greater for companies setting up
manufacturing operations in Russia.
Indeed, research conducted by PwC
and AIPM shows that red tape is one of
the biggest obstacles cited by foreign
pharmaceutical companies thinking of
setting up production facilities there (see
Figure 6).
Political interference
Source: PricewaterhouseCoopers/Association of International Pharmaceutical
Economic and political risks come a
Manufacturers Survey, 2005 close second on the list of deterrents
multinationals cite – arguably with good
9. cause. Indian pharmaceutical company One such instance of the potential WTO. At present, for example, it does 3.5% and 12% of the pharmaceuticals
Dr Reddy’s Laboratories has already minefield facing overseas investors is the not provide protection for test data market in Russia, although independent
fallen foul of the authorities in the course so-called “Grandfather Clause”, which for pharmaceuticals. The enforcement experts suggest that the figure could be
of trying to sell its stake in the formerly theoretically gives preferential treatment regime is also weak; judicial corruption higher – and domestic manufacturers
state-owned Biomed Russia to another to “priority” projects undertaken by is endemic, and the legal system is are thought to be amongst the main
Russian firm. Moscow’s office of the Russian companies in which foreign ill-prepared to handle sophisticated culprits. In 2003, the ministry suspended
public prosecutor issued an injunction shareholders own more than 25% of patent cases, although a specialised the licences of 321 pharmaceuticals
ordering the return of the shares to the equity. The clause stipulates that all higher patent chamber has now been companies for manufacturing and trading
the authorities, on the grounds that such companies should be protected established, bringing greater expertise in counterfeit medicines.
Dr Reddy’s had failed to implement from increases in federal taxes and and efficiency to the resolution of
the investment programme to which import duties until the initial investment patent disputes. Russian Health Minister Mikhail Zurabov
it had committed itself when it bought has been recouped, but since there also promised that the ministry would
its stake in the vaccine producer in are no corresponding tax and customs develop a new system for supervising
1995. But political considerations may regulations the relief it affords is entirely pharmaceutical production; however,
also have played a part in the legal hypothetical. Corruption it has not yet done anything. One
tussle; according to several newspaper suggestion is to mark products with
reports, Biomed stores vital vaccines Nevertheless, the government has a bar code and hologram, but few
for the Russian Ministry of Emergency now introduced certain incentives In fact, corruption is rife in Russia industry commentators believe this will
Situations – prompting queries as to (including exemptions from customs – and, if anything, getting worse. work, since the use of special marks for
why the government allowed Dr Reddy’s duties and VAT in respect of charter The latest Transparency International licensed video and audio production
to acquire shares in such a “strategic capital contributions) which may be Corruption Perceptions Index ranks has done nothing to stop the Russian
facility” in the first place. attractive to foreign companies setting Russia 126th on the list of 159 countries market from being flooded with fake
up manufacturing operations in Russia. surveyed and reports that the situation DVDs and CDs.
It has also supported the creation has deteriorated since 2004 (when
of special economic zones, like the Russia was ranked 90th). A wide-
Foreign investment Kaliningrad economic zone, which ranging study released by the INDEM
provide customs and tax breaks for Foundation confirms these findings. It A weak infrastructure
investors and companies operating in estimates that companies pay about
There are also numerous official and such areas. $316 billion in bribes every year, and that
unofficial barriers to overseas investment the average “sweetener” is $135,800 Russia’s transport infrastructure is
in Russia, a fact that explains why – 13 times more than in 2001. Moreover, also lacking in a number of respects.
Russia does relatively badly in the government officials are amongst the It possesses one of the largest rail
international competition for foreign Poor enforcement of worst offenders, even though President networks in the world, but the shift from
finance. According to preliminary Putin came to power vowing that he a planned economy to a market-driven
balance-of-payments data from the intellectual property rights would fight corruption. economy has dramatically changed
Central Bank of Russia, foreign direct the demands on the transport sector,
investment (FDI) flows into the non- Russia’s poor record of enforcing producing conditions that favour road
financial sector reached $16.7 billion intellectual property rights is another rather than rail transport. Rail freight
in 2005, but Russia’s total cumulative source of concern. It has been on the Counterfeiting volumes are now about 60% of their
ratio of FDI to GDP is still only about US Special 301 Priority Watch List historical peak – and lower revenues
6%. This is six times less than the since 1997, and its failure to comply have prevented the system from being
amount China attracts and less than with the TRIPS Accord on trade-related Counterfeiting is another major problem. maintained as thoroughly as it should be.
one‑third of the level in many other aspects of intellectual property rights According to the Russian Ministry for
transitional economies. remains one of the biggest stumbling Healthcare and Social Development, The situation when it comes to roads is
blocks in its negotiations to join the fake drugs currently account for between even worse. The Russian government
10. recognises the importance of creating border. It therefore makes sense to target
a viable transport infrastructure, but the these areas first.
World Bank estimates that it is spending
less than a sixth of the money required to Even so, the limitations of Russia’s
produce a road network that will meet the transport infrastructure and the fact that
country’s future needs. Despite a 35% distribution is particularly important in
increase in the last decade, for example, a highly competitive market dominated
the density of the road network in by generics mean that any Western
Western Russia (where traffic is greatest) company wanting to break into Russia
is still only one-sixth of that in Latvia, will have to form a strategic partnership
one-fifth of that in Estonia and one-third with a distributor – and, here, the mid-
of that in Ukraine. sized firms offer most promise. They are
generally more willing than the leading
distributors to work with a wide range
of products and establish long-term
Strategies for entering relationships with manufacturers and
retail outlets.
the market
New entrants may also want to consider
Yet the difficulties associated with forming an alliance with a local producer;
trading in Russia should not obscure its this is often an easier way of securing
potential. The Russian pharmaceuticals a foothold in new markets than setting
market has grown faster than the up independently. If the arrangement
markets of the developed world since the proves successful, they can then
start of the millennium. This performance acquire their partners, but they will
is expected to continue, with sales need to choose the firms with which
reaching about $6 billion by 2010 – 61% they work very carefully and ensure that
more than they were in 2005. Moreover, they adhere to Russia’s anti-monopoly
if the country maintains its positive legislation. This specifies, for example,
economic trajectory over the long term, that when a company with assets of
disposable incomes will rise still further, over $103m acquires a stake of more
putting more patients in a position to buy than 20% in another company, it must
Western medicines. obtain prior consent from the Federal for pharmaceutical companies prepared a centre for clinical testing – no small
Anti-monopoly Service (FAS). It must also to invest in the region. The potential for consideration, as development costs
So how should the pharmaceutical obtain consent for any further increases companies that focus on areas of unmet continue to soar. And though the legal
majors prepare to capitalise on these in its shareholding. need – including chronic conditions system for protecting patent rights
opportunities? One of the biggest like heart disease, diabetes and HIV remains a serious concern, there is
challenges is the country’s sheer scale. – is particularly significant. Conversely, reason to believe that this will improve.
Russia is nearly double the size of the although the market for generic drugs is Russia has made no secret of its desire
US, covers 10 time zones and suffers Conclusion much larger in terms of volume, it is much to join the WTO by the end of 2006, after
from some of the planet’s harshest more competitive. more than a decade of discussions, and
weather conditions. But over 80% of better provision for intellectual property
the population is concentrated in the In short, the Russian Federation presents The introduction of GCP and easy may well seem a price worth paying to
“European” part of the state, west of the some undeniable challenges, but it also access to a large patient population resolve its differences with the existing
Ural Mountains, and along the southern provides some genuine opportunities has also increased Russia’s appeal as member states.