Russia’s Gross Domestic Product has dropped by 4.6% according to figures released today, worse than the 4.4% expected by the Economy Ministry.
The Russian economy has shrank the most since 2009, and the country are currently in recession due to a currency crisis and the drop in oil prices; Russia’s first recession in six years.
Russia have been severely affected by the drop in commodities prices, as Russia relies on oil and gas for about half of its budget revenue. This, combined with sanctions imposed by the West, mean the economy is expected to sink by around 9% before it begins to recover.
However, the Economy Ministry say that the economy has reached its “lowest point”.
Ernesto Ramirez Rigo, International Monetary Fund Mission Chief for Russia, said: “External shocks, added to pre-existing structural weaknesses, are certainly weighing on Russia’s growth prospects.
“Maintaining a prudent fiscal policy and reviving slow-moving structural reforms could help unlock Russia’s growth potential.”
