Moody's: Russian economy officially in recession

The ongoing decline in oil prices and the weakening of the Russian ruble will deepen the recession of the Russian economy, Moody's specialists said.

A report by Moody's Investors Service says that the Russian economy officially remains in a recession. The current state of affairs with oil prices and the exchange rate of the national currency will delay the recovery of the Russian economy in 2016, the report said.

According to Moody's, the Russian economy will decline by three percent in 2015, whereas in 2016, Russia will face zero percent of growth. Moody's suggests that the Russian economy will growth slightly in late 2015.

Moody's analysts note that factors of recession include reduction in private consumption and companies' investment as well as international sanctions against Russia. According to the agency, the sanctions will cost Russia 1-1.5% of real GDP before 2020.


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