Economics

Russian Economy Shrinks Most Since 2009 as Oil Prices Sink

  • GDP drops 3.7% in 2015, less than 3.8% fall seen in survey
  • Renewed plunge in crude at start of 2016 may extend recession

Can Russia Handle Ruble-Dollar Weakening to 100?

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Russia’s economy, facing renewed pressure from plunges in energy prices and the ruble, contracted the most since 2009 last year on oil’s decline and sanctions over the conflict in Ukraine that curbed access to international financing.

Gross domestic product fell 3.7 percent after growth of 0.6 percent in 2014, the Federal Statistics Service said Monday on its website, citing preliminary estimates. Economists in a Bloomberg survey forecast a 3.8 percent drop. A separate release of consumer data for December showed spending continued to decline as real wages and disposable incomes fell further.