Russian wages have suffered another drop, plummeting 9.2 percent from July 2014.
The Federal Statistics Service in Moscow issued a statement today detailing the figures. Gross domestic product shrank 4.6 percent from a year earlier in the second quarter, although inflation has slowed to 15.6 percent after a 13 year high in March.
Piotr Matys, a London-based foreign-exchange strategist at Rabobank told Bloomberg:
“Domestic demand and investment are constrained by still fairly tight monetary policy. I can’t see domestic demand and investment improving significantly in the coming months.”
Russia’s economy is becoming increasing vulnerable as the price of oil, the country’s main export, has tanked over the past few months. The Russian ruble has also dropped 25 percent over the last three months, with retail sales falling for the seventh month in a row.
