Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Competing narratives in Malaysia Airlines disaster coverage

Read more

AFRICA NEWS

Kenya : Police arrest 8 over Mombasa rampage

Read more

FOCUS

Overfishing and the global appetite for bluefin tuna: can Tokyo turn the tide?

Read more

MEDIAWATCH

Too many graphic images from Gaza ?

Read more

FASHION

Who's next in Paris, an event with international ready-to-wear and fashion accessories collections

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

THE OBSERVERS

Muslims and Christians clean up Bangui, and violence spirals out of control in Algeria's Gardaia

Read more

IN THE PAPERS

Is there such thing as 'telegenic' victims of war?

Read more

IN THE PAPERS

2014-07-22 07:21 IN THE FRENCH PRESS

Read more

  • Israel hits targets in Gaza despite diplomatic efforts for ceasefire

    Read more

  • Flight MH17 shot down ‘by mistake', US intelligence indicates

    Read more

  • France gives go-ahead to pro-Palestinian Paris rally

    Read more

  • Video: Lebanon fears fallout from regional turmoil

    Read more

  • Conflicting rulings by two US courts cast shadow on future of Obamacare

    Read more

  • US, European airlines suspend flights to Tel Aviv over Israel-Gaza conflict

    Read more

  • Widodo wins Indonesian presidential election

    Read more

  • French Jews mourn French-Israeli soldier killed in Gaza

    Read more

  • Australian veteran Rogers claims 16th stage of Tour de France

    Read more

  • PSG punished by UEFA for abuse of disabled Chelsea fans

    Read more

  • Colombia's Rodriguez signs '€80m' contract with Real Madrid

    Read more

  • Children killed in minibus crash in eastern France

    Read more

  • Hollande says French warship delivery will ‘depend on Russia’s attitude’

    Read more

  • A call for harmony in riot-hit ‘Little Jerusalem’ Paris suburb

    Read more

  • Notorious ‘VIP’ prison in Paris closed for renovations

    Read more

Europe

Russia has entered recession, IMF says

© AFP

Text by FRANCE 24

Latest update : 2014-04-30

The International Monetary Fund has cut its 2014 growth forecast for Russia, the Fund’s mission chief Antonio Spilimbergo said on Wednesday, adding that the country is already “experiencing recession”.

Spilimbergo also told reporters that international sanctions imposed on Russia over the crisis in Ukraine, and the threat of more to come, were hurting the economy and threatened investment.

He said the IMF expected Russia to grow just 0.2 percent this year, compared with an earlier forecast of 1.3 percent, and added there were “considerable downside risks”.

“If you understand by recession two quarters of negative economic growth, then Russia is experiencing recession now,” he said.

The economy contracted quarter-on-quarter in the first three months of this year, and Spilimbergo’s comments made clear he expected further contraction. He said the IMF forecast was for 1 percent growth in 2015.

The Fund’s projection for capital outflows was in line with the Russian government’s own forecast.

The central bank has said nearly $64 billion left Russia in the first quarter of 2014. The IMF expects capital outflow of $100 billion this year.

Spilimbergo said the central bank’s decision to raise interest rates last week would reduce inflation, but would not be enough. The IMF said depreciation in the rouble would put pressure on inflation but forecast consumer prices would rise more than 6 percent in 2014.

Spilimbergo said Russia needed to ensure macroeconomic stability to offset the impact of geopolitical tensions.

He said the country also needed a flexible exchange rate and tighter fiscal policy to overcome economic hurdles, but the government had been right to stick with a budget rule limiting government spending.

The Ukraine crisis has pushed relations between Russia and the West to their lowest since the end of the Cold War and has led to the imposition of sanctions on some Russian individuals and companies close to Russian President Vladimir Putin.

The Ukraine crisis has pushed relations between Russia and the West to their lowest since the end of the Cold War and has led to the imposition of sanctions on some Russian individuals and companies close to Russian President Vladimir Putin.

(FRANCE 24 with REUTERS)

Date created : 2014-04-30

  • UKRAINE

    EU, US sanctions against Russia target Putin cronies

    Read more

  • UKRAINE

    G7 agrees new sanctions on Russia over Ukraine crisis

    Read more

  • USA - RUSSIA

    US and Russia engage in tit-for-tat sanctions

    Read more

COMMENT(S)