According to US-based financial magazine Forbes, Russia is the least favourable economy of all major emerging markets in relation to foreign direct investment. In a recently compiled six-month rating named Capital Hospitality Index, Russia was ranked 103 rd out of 135 studied countries, just one notch lower than China. Russia's position in the rating (with the results of 40.9 points) is well below its peer emerging economies, such as Brazil (64.7 points, rank 46 th ) or India (51.6 points, rank 77 th ). Forbes indicates the main problem of Russian economy is pocketing of foreign direct investment at enormous rate, incomparable to other developing countries. The magazine's study notes its feeble banking system, as well as corruption and lack of trust in state institutions. However, there are some advantages of Russian economy in relation to other emerging markets. Those are relatively low corporate tax rate, solid foreign trade and GDP growth. Corruption heavily weighs Russia's rating. Still, according to RosStat, foreign direct investments increased by 39% year-on-year to $13.1 billion in 2005. In comparison with other post-Soviet states, Russia comes before Azerbaijan (35.3 points), Belarus (24.3 points, rank 131 st ), Ukraine (40 poimts) and Uzbekistan (32.4 points) but is outpaced by Kazakhstan (43.9p points), Armenia (53.4 points). The Baltic states have very high ratings: Estonia with its 89.1 points, ranks 8 th overall.
The National Bank of Slovakia is likely to raise the key policy interest rates at its regular board meeting tomorrow, according to bank analysts. The measure was considered by the board since December 2005 and has been voted down by narrow margins since. Inflation concerns and the surprisingly high economic growth are the main reasons for the expected tightening of the monetary policy. Analysts underlined that with the current trends the average inflation target of the central bank for this year of 3.1% would be difficult to meet.