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.

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.


Anna Fedec |
8/11/2014 4:17:32 PM