EFTA Document EFTA01453230

7 March 2014 Special Report: Russia: macro implications of increased geopolitical risk Impact on growth In terms of the impact on growth, capital outflows will undermine investment activity with the funds taken off-shore rather than invested in new production facilities. The uncertainty over the political and economic situation in Ukraine as well as concerns over possible sanctions imposed on Russian businesses could further exacerbate costs. Figure 9: GDP growth and its components' dyna