Current Affairs PDF Sales

Russia Warns OF 2015 Recession

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

Russia warns of 2015 recession, as the Russian economy is tumbling with oil prices and Western imposed sanctions due to Crimea annexation. Rouble suffered its worst one-day fall since 1998, as oil prices continued its fall from Dec 1, 2014.

Russia is the world’s second-largest oil exporter, with oil and gas accounting for 70% of its exports and half of its government’s revenue. It was previously estimated that the economy would grow by 1.2% in 2015, while based on recent estimate data the economy would contracting at 0.8% in 2015. With oil as its main source of revenue, the rouble has already slid 40% in value this year (also in response to western sanctions).

With average oil price of $80 per barrel in 2015, the finance ministry’s forecast for a fall in GDP was in line with the economy ministry’s prediction of a 0.8% contraction. With the oil price averaged at $60 a barrel in 2015 was pessimistic, and at that price, the Russian economy would contract as forecast in the central bank’s “stress scenario”.