Accessibility links

Breaking News

Smaller Decline In Russian Economy Suggests Recession Is Waning

Bank of Russia Governor Elvira Nabiullina says the Russian economy is moving toward growth in a "patchy and unsteady" way.

Russia's economy contracted by 0.4 percent over the past year, authorities say, indicating that while it remained in recession it appears to be stabilizing.

The 0.4 percent decline in the economy registered in the third quarter followed bigger drops of 0.6 percent and 1.2 percent in the second and first quarters, respectively, Russian statistics agency Rosstat reported on November 14.

The Russian central bank said on November 14 that it expected the economy to return to meager growth of between 0.2 to 0.3 percent in the fourth quarter. Other forecasters do not see growth returning until 2017.

Signs of a revival in growth are "still very patchy and unsteady," Russian central bank chief Elvira Nabiullina told parliament on November 14.

Russian leaders have expressed hope that U.S. President-elect Donald Trump will consider easing economic sanctions that have crimped Russian growth since they were imposed in 2014 over Moscow's aggression in Ukraine.

The Kremlin said Trump backed a "normalization" of ties in a phone conversation with Russian President Vladimir Putin on November 14.

Despite some optimism about an easing of sanctions, however, Nabiullina said she expected "external conditions" to remain "difficult."

Based on reporting by AFP and TASS