Russia’s First GDP Slump Since 2009 Signals Milder Recession

Pensioners walk in Red Square as St. Basil's Cathedral, left, stands beyond in Moscow, Russia, on Saturday, April 18, 2015. Russia will extend a freeze on pension-fund contributions for another year and put off a decision on an overhaul that may result in the confiscation of 3 trillion rubles ($52 billion) of retirement savings, a survey showed.

Photographer: Andrey Rudakov
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Russia’s economy fared better than forecast by all analysts, a sign the world’s biggest energy exporter will suffer a milder recession than six years ago as the ruble’s rebound and monetary easing shore up domestic demand.

Gross domestic product contracted 1.9 percent in the first quarter from a year earlier after a 0.4 percent gainBloomberg Terminal in the previous three months, the Federal Statistics Service in Moscow said on Friday, citing preliminary data. That was better than every forecast in a Bloomberg survey of 24 analysts, whose median estimate was for a 2.6 percent slump. The Economy Ministry had projected that output shrank 2.2 percent in the period.