Russia's GDP Growth Slows to 0.8% in Q2

Russia’s economy expanded 0.8 percent year-on-year in the first three months of 2014, slightly below 0.9 percent increase in the previous quarter, preliminary data from the Federal Statistics Service showed.
Anna Fedec | 8/11/2014 4:17:32 PM
Russia's economic growth has been slowing since the first quarter of 2012 when it advanced 4.8 percent. The preliminary estimates came slightly better than a 1.2 percent estimate released last month by the Economy Ministry. 

In July, The International Monetary Fund has downgraded Russia’s economic growth forecast to 0.2% from 1.3% for 2014 and to 1% from 2.3% for 2015 due to weakening domestic demand amid rising geopolitical tension. 

The ruble depreciated almost 10 percent against the US dollar since the beginning of the year. As a result, the central bank already increased rates three times this year to 8 percent, aiming to curb inflationary pressures from a weakening currency.