Russian Economy Grinding To A Halt As Ukraine Crisis Takes Heavy Toll
Mar. 24, 2014
MOSCOW (Reuters) – Russia’s economy is barely growing, inflation is rising fast, and capital is pouring out of the country, the Economy Ministry said on Monday, a sign that international tensions around Ukraine are already inflicting severe economic costs.
In February Russia’s gross domestic product eked out growth of just 0.3 percent year-on-year, down from 0.7 percent in January, Russia’s Deputy Economy Minister Andrei Klepach said.
Last year the economy grew by just 1.3 percent, far below initial forecasts, but there had been hopes that growth would rebound this year. Instead Russia’s economic performance is deteriorating further as the international tensions around Ukraine lead capital to flee Russia.
Klepach said that when seasonal and calendar factors are taken into account, February’s 0.3 percent was “not bad” and “better than expected.”