facebook
twitter
rss
account
search
search
 

Russian economy nears recession

The growth rate was downgraded, and the projected rate of inflation rose.
By Ed Adamczyk   |   Aug. 27, 2014 at 3:35 PM   |   Comments

http://cdnph.upi.com/sv/em/i/UPI-8801409166171/2014/1/14091676934619/Russian-economy-nears-recession.jpg
MOSCOW, Aug. 27 (UPI) -- The Russian economy is nearing a recession, an Economic Ministry official said, the result of Western sanctions and a ban on food imports.

Oleg Zasov, the ministry's head of forecasting, called the situation "close to recession" Tuesday. Russia's growth forecast, announced Tuesday, was cut from two percent to one percent, and its inflation forecast was raised to 7.5 percent from 6 percent.

Russia's economy grew by 1.3 percent in 2013. Price increases of about two percent, typical in the United States, are regarded by economists as normal and healthy.

Predictions have been downgraded since Western countries imposed sanctions in July for Russia's support of separatist rebels in Ukraine.

Deputy Economic Minister Alexei Vedev said a 2015 sales tax in Russia could add another one percent to its inflation rate.

Falling oil prices have also hurt Russia, a large exporter of oil. The price of benchmark Urals oil fell to $98 per barrel this week, down from $115 per barrel last week.

Follow @adamczyk_ed and @UPI on Twitter.
Contact the Author
© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Stratosphere crash driver commits suicide Stratosphere crash driver commits suicide
2
Syrian Al Qaida group executes Lebanese soldier Syrian Al Qaida group executes Lebanese soldier
3
Kentucky firefighter injured in ice bucket challenge dies Kentucky firefighter injured in ice bucket challenge dies
4
White House intruder had a knife White House intruder had a knife
5
Sister shoots and kills brother to protect father Sister shoots and kills brother to protect father
Trending News
Video
x
Feedback