Russia’s economy contracted for the first time in more than five years in November, in the latest sign that the economy is heading toward recession next year.
Russia’s gross domestic product shrank 0.5% on the year in November after showing growth close to zero in the preceding month, data from the economy ministry showed Monday. It was the economy’s first contraction over a 12-month period since late 2009. The economy grew by 0.6% in the first 11 months of this year, the data showed.
After an optimistic start to the year, when Russia hosted the Winter Olympic Games and enjoyed high oil prices, the world’s largest country by area was hit by Western sanctions, massive capital outflows and a sudden drop in oil prices.
Now, the economy is widely expected to contract next year for the first time since the global financial crisis.Read the rest of the story HERE.
Russia's ruble down 7 percent after report shows economy shrinking for first time since 2009
The Russian currency extended its losses on Monday after a report showed the economy has started shrinking in annual terms for the first time since 2009 as the country is buffeted by falling oil prices and Western sanctions.
Meanwhile, the government, which has been scrambling to support the ruble and the economy, announced fresh steps to keep the banks afloat.
The ruble has been one of the world's worst performing currencies this year and was down another 5 percent on Monday, trading at 56 rubles per dollar in early afternoon in Moscow, wiping off some of the gains it made last week.
The fall came as the Economic Development Ministry issued a report showing the economy shrank by 0.5 percent in November compared with a year earlier. The ministry attributed the year-on-year decline in the economy, Russia's first in five years, to a sharp drop in manufacturing and investment.Read the rest of the story HERE and a related video below:
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