Open

Coming up

Don't miss

Replay


LATEST SHOWS

#TECH 24

Virtual insanity? Artist to 'experience life' through Oculus Rift headset for 28 days

Read more

#TECH 24

What does the future hold... for music?

Read more

ENCORE!

David LaChapelle on ditching celebrity to criticise consumer culture

Read more

REPORTERS

Lebanon's Shebaa, a village caught in the crossfire

Read more

IN THE PAPERS

French MPs debate whether to recognise Palestine

Read more

IN THE PAPERS

All dogs may go to heaven after all

Read more

THE BUSINESS INTERVIEW

The 'Stagnation Trap', with Catherine Mann, Chief Economist at the OECD

Read more

FOCUS

Thiaroye, a dark chapter in France and Senegal's common history

Read more

DEBATE

Hollande and Africa: French president speaks to France 24

Read more

Recession has begun in Russia, says minister

Latest update : 2008-12-12

"The recession in Russia has begun," announced Moscow's deputy minister of economic development, Andrei Klepach. Indicating that the slowdown could last a long time, he added: "I'm afraid this will not end in two quarters."

AFP - The Russian economy has entered recession, a deputy minister of economic development said Friday, according to the Interfax and RIA Novosti news agencies.
  
"The recession in Russia has begun. There will be two quarters" of economic contraction, the minister, Andrei Klepach, was quoted as saying by RIA Novosti.
  
A recession is defined as at least two consecutive quarters of economic contraction.
  
Klepach said Russian growth for 2008 would fall short of the previously forecast 6.8 percent, citing setbacks in industrial production and the wider economy that began in October, along with the full onset of the global financial crisis.
  
"A major drop began in October and there will also be in November-December," he said, according to RIA Novosti.
  
Interfax also quoted him as saying: "I am afraid this will not end in two quarters," suggesting the slowdown could last even longer.
  
The Russian economy has been hit hard by the global economic crisis despite initial claims by officials that it would be an island of stability amid the turmoil.
  
Moscow's stock markets have lost more two-thirds of their value since posting record highs in May and the central bank has spent tens of billions of dollars in recent weeks to contain a slide in the value of the ruble.
  
Fallout from the global crisis and a plunge in the price of oil are expected to sharply cut the rapid growth that Russia has enjoyed in recent years. The country's economy grew 8.1 percent in 2007 and 7.4 percent in 2006.
 

Date created : 2008-12-12

COMMENT(S)