Russian economy shrinks for since 2009 – NU.nl

Russian economy shrinks for since 2009 – NU.nl

The decline last month was the first since 2009.

The Russian economy is hit hard by Western sanctions against the country and the sharp fall in oil prices. Therefore, the export earnings of Russia take off hard, much capital the country is completely drained and Russian banks and companies as well as cut off from the international financial markets.

In the first eleven months of this year, growth slowed the Russian economy already down to 0.6 percent. It is generally expected that Russia’s future major recession will survive.

The Central Bank of Russia has recently indicated that the Russian economy next year is likely to

shrink by 4.5 percent, as oil about $ 60 per barrel remains cost. The normative price of Brent oil is over half halved and fluctuated in recent weeks around $ 60.

The economic concerns and falling oil prices made earlier this month for a panic on the currency markets and the free fall of the ruble. Who has once again gained some ground, partly through government intervention. Monday lost the Russian currency, however, again more than 6 percent of its value against the dollar

By:. ANP