×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Worst Not Over for Russia as Economy Shrinks 4.3% in April

Russia's GDP dropped by 0.6 percent in April, accelerating from a 0.4 percent decline in March.

Russia's economic recession deepened in April as the decline in gross domestic product accelerated to 4.3 percent year-on-year, quashing hopes that the worst of the crisis had passed, state development bank VEB said in a report released Wednesday.

"The accelerating fall in GDP in April indicates that the crisis still hasn't passed its lowest point," the report cited VEB's chief economist Andrei Klepach as saying.

The drop exceeded many economists' expectations, nipping hopes for a quick economic recovery in the bud.

Just earlier this month, German Gref, the head of Russia's biggest lender Sberbank, declared that the peak of Russia's economic crisis had passed, the TASS news agency reported.

Deputy Economic Development Minister Alexei Vedev last week forecast a milder contraction of 4 percent in April, the Interfax news agency reported.

Russia's GDP dropped by 0.6 percent in April, accelerating from a 0.4 percent decline in March. The economy shrank by a total of 2.5 percent in the first four months of the year, according to VEB.

Russia's economy has slowed sharply since the beginning of last year due to Western sanctions over the Ukraine crisis and a plunge in the price of oil, Russia's main export.

Russian GDP growth fell into negative territory in November last year, dropping 0.5 percent year-on-year for the first time since 2009, according to a report by the Economic Development Ministry.

The steep slump in April was led by a 2 percent fall in manufacturing, a 1.5 percent drop in retail and a 0.5 percent decline in mining production, according to the VEB report.

The downturn was also aggravated by a fall in the volume of oil exports, the report said, adding that a surge in exports of oil and oil products had propped up the economy in the beginning of the year.

First Deputy Prime Minister Igor Shuvalov on Wednesday called the latest economic growth figures "disappointing," the TASS news agency reported.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more