News / Economy

RIA: Russian Finance Ministry Sees GDP Falling

People pass by a board displaying exchange currency rates in Moscow, April 3, 2014.
People pass by a board displaying exchange currency rates in Moscow, April 3, 2014.
Reuters
— Russia's economy is likely to shrink again in the second quarter of 2014, a senior finance ministry official was quoted as saying on Tuesday, after contraction began in the first three months of the year.
 
The ministry said economic performance in the third quarter would largely depend on the level of geopolitical uncertainty, a clear reference to the crisis over neighboring Ukraine, which has seen Western sanctions imposed and scared off investors.
 
Maxim Oreshkin, director of the ministry's long-term planning department, said output of electricity, freight transport and gas production had been weak in April and that business activity indicators did not give rise for optimism, according to the state-run RIA Novosti news agency.
 
“Everything points to GDP [gross domestic product] for the second quarter declining compared with the previous quarter, seasonally adjusted, for the second time in a row,” Oreshkin was quoted as saying.
 
The forecast was in line with the view of the International Monetary Fund, which said last week that Russia was already “experiencing recession”.
 
Earlier on Tuesday, the Organization for Economic Cooperation and Development cut its forecast for Russian growth this year by almost four-fifths, to 0.5 percent from a previous 2.3 percent, saying the impact of events in Ukraine had halted a modest recovery under way at the end of 2013.
 
The IMF last week took an even more gloomy view, cutting its 2014 growth forecast for Russia's oil- and gas-based economy to just 0.2 percent from an earlier 1.3 percent.
 
Russia's economy grew 1.3 percent last year.
 
The IMF said Ukraine-related sanctions, imposed by the United States and the European Union, were scaring off investors.
 
Russia's central bank unexpectedly raised interest rates for the second time in less than two months on April 25, hiking its main rate by 50 basis points to 7.5 percent to prevent a weakening rouble fuelling inflation.
 
The finance ministry had said last month that growth in the remaining quarters of this year would be close to zero and could contract in one of them.
 
The economy ministry has said the economy contracted by 0.5 percent in the first quarter and that growth may not exceed 0.5 percent for the year.
 
Oreshkin was quoted as saying third-quarter performance would also depend on how sharply bank lending slowed against the background of the central bank's rate rise and “a substantial rise in money market rates.”

You May Like

Diplomats Work to Extend Israeli-Palestinian Cease-Fire

US Secretary of State John Kerry, diplomats from France, Britain, Germany, Italy, Turkey and Qatar gathered in Paris Saturday to discuss crisis More

Photogallery US Defense Department Warns of Arms to Eastern Ukraine

‘Imminent’ delivery of Russian rocket launcher poses threat to civilians, US says More

Video Researchers: Africa Genetically Modified Crops Held Back by Scaremongering

GM crops offer best hope of increasing productivity and coping with climate change in Africa, according to co-author of Chatham House report More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Astronauts Train in Underwater Labi
X
George Putic
July 25, 2014 7:25 PM
In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.
Video

Video Not Even Monks Spared From Thailand’s Junta-Backed Morality Push

With Thailand’s military government firmly in control after May’s bloodless coup, authorities are carrying out plans they say are aimed at restoring discipline, morality and patriotism to all Thais. The measures include a crackdown on illegal gambling, education reforms to promote students’ moral development, and a new 24-hour phone hotline for citizens to report misbehaving monks. Steve Sandford reports from Bangkok.
Video

Video Virtual Program Teaches Farming Skills

In a fast-changing world beset by unpredictable climate conditions, farmers cannot afford to ignore new technology. Researchers in Australia are developing an online virtual world program to share information about climate change and more sustainable farming techniques for sugar cane growers. As VOA's Zlatica Hoke reports, the idea is to create a wider support network for farmers.
Video

Video Airline Expert: Missile will Show Signature on Debris

The debris field from Malaysia Airlines Flight 17 is spread over a 21-kilometer radius in eastern Ukraine. It is expected to take investigators months to sort through the airplane pieces to learn about the missile that brought down the jetliner and who fired it. VOAs Carolyn Presutti explains how this work will be done.
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.