Russian Economy Contracts More than Expected

Russian GDP shrank 2.2 percent year-on-year in the first three months of 2015, worse than a 1.9 percent contraction previously reported. It is the first decline since the last quarter of 2009, final data from the statistical office showed.

Manufacturing contracted 0.6 percent and construction fell 4.1 percent. Among services, wholesale and retail trade decreased 7.6 percent, real estate activities went down 3.3 percent, transport and communication decreased 0.4 percent and financial activities fell 3.9 percent. 

Year-on-year, only mining (up 4.9 percent), agriculture, hunting and forestry (up 2.9 percent), public administration and military security (up 0.3 percent), electricity, water and gas production (up 0.1 percent) increased. 

On a quarter-on-quarter seasonally adjusted basis, the economy contracted for the third consecutive period by 1.29 percent. 

The Economy Minister expects the GDP to shrink between 2.5 and 2.8 percent in 2015.

Russian Economy Contracts More than Expected

Joana Taborda |
6/15/2015 4:43:37 PM