Russian GDP Shrinks For The First Time in 6-Years


The Russian economy contracted 1.9 percent year-on-year in the first three months of 2015, preliminary data from the statistical office showed. It is the first decline since the last quarter of 2009 prompted by a sharp drop in oil prices and sanctions imposed over the Ukraine crisis .

The slowdown was better than the Economy Ministry projection of 2.2 percent decline and almost in line with forecasts from the Prime Minister office.  

The economy is expected to shrink 2.8 percent in 2015, estimates from the Economy Minister showed, following a 1.3 percent contraction in 2014. However, the GDP is expected to return to growth in the end of the year. Since the beginning of the year, the ruble gained more than 16 percent to the USD and prices of crude oil recovered slightly. Meanwhile, the central bank cut rates three times aiming to boost consumption.

Russian GDP Shrinks For The First Time in 6-Years


Joana Taborda | joana.taborda@tradingeconomics.com
5/15/2015 4:47:49 PM