Russian Economy Shrinks for First Time Since 2009


Russia's economy shrank in November for the first time in five years, the government has said, as sliding oil prices and Western sanctions over Ukraine take their toll.

The economy ministry said gross domestic product for the month contracted by 0.5% year-on-year for the first time since October 2009.

The ministry chalked up the negative growth to a slowdown in a number of sectors including services, agriculture, extraction of mineral resources and construction.

Under pressure from the low oil price and the Western sanctions over the Kremlin's support for separatists in Ukraine, Russia is sliding into a full-blown economic crisis, with the collapse of the ruble and growing inflation.

Read more on the Russian economy on IndustryWeek.

IndustryWeek is an NED companion site within Penton's Manufacturing & Supply Chain Group.

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