Rus­sian cen­tral bank says re­ces­sion over

The Myanmar Times - - International Business -

RUS­SIA’S cen­tral bank has said that GDP fig­ures show the coun­try is mov­ing out of its pro­tracted re­ces­sion and re­turn­ing to growth.

“The eval­u­a­tion of the Rus­sian GDP shows that the re­ces­sion is now be­hind us and ahead is slow eco­nomic growth,” the bank said in a note on Au­gust 8.

The Bank of Rus­sia es­ti­mated that growth in the sec­ond quar­ter of 2016 hit 0.2-0.3 per­cent and said it had boosted its fore­casts to 0.4pc growth in the third quar­ter and 0.5pc in the fourth quar­ter.

Rus­sia has been bat­tered by the long­est re­ces­sion to hit the coun­try dur­ing Pres­i­dent Vladimir Putin’s more than 16 years at the helm caused by low oil prices and Western sanc­tions over the Ukraine cri­sis.

Of­fi­cials have pre­vi­ously in­sisted the re­ces­sion is slow­ing and econ­omy min­is­ter Alexei Ulyukayev pre­dicted that the econ­omy will shrink by 0.2pc over­all this year af­ter a drop of 3.7pc in 2015.

In­ter­na­tional ex­perts how­ever re­main more down­cast on Rus­sia’s prospects with the IMF fore­cast­ing GDP will shrink by 1.2pc this year.

The eco­nomic cri­sis has hit the spend­ing power of aver­age Rus­sians hard as the ru­ble has tanked and the sit­u­a­tion re­mains grim de­spite the ap­par­ent first shoots of re­cov­ery.

In a sign that the re­bound is by no means cer­tain the car in­dus­try an­nounced yet fur­ther woe­ful re­sults with sales in July drop­ping by some 16.6pc com­pared with the same month last year.

The car in­dus­try in Rus­sia has been bru­talised by the eco­nomic cri­sis and the lat­est sta­tis­tics from man­u­fac­tur­ers were even worse than the drop of 12.5pc in June.

Car sales in Rus­sia have al­most halved as the eco­nomic woes have bit­ten into a mar­ket that once drew large in­vest­ment from for­eign auto giants. –

Photo: AFP

Rus­sian Pres­i­dent Vladimir Putin has had to deal with the long­est re­ces­sion in his 16 years at the helm.

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