Russia’s economy shrank a staggering 9.5% in first quarter

RIA Novosti
Thursday, April 23, 2009

MOSCOW, April 23 (RIA Novosti) – Russia’s gross domestic product (GDP) declined by an annualized 9.5% in January-March 2009, an Economic Development Ministry official said on Thursday.

Andrei Klepach, a deputy economics minister, said that the GDP decline in March also equaled 9.5%.

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Klepach said the substantial decline in the first quarter was attributable to the slump in construction (a decline of about 20%) and lower tax revenues. The GDP also shrank due to reduced investment and retail trade volumes, Klepach said.

The economics ministry expects the country’s GDP to decline 8.7-10% in April-June 2009 as compared with the same period of last year, Klepach said, adding, however, that the Russian economy “was beginning to rebound.”

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