Russia’s economic contraction deepened in April as its key drivers deteriorated, the economy ministry said Monday, Dow Jones reported. Russia’s gross domestic product contracted by 4.2% in April, compared with a year earlier, after shrinking by 2.7% in March. In the first four months of the year, the economy contracted by 2.4%, said the ministry. Russia’s economy was dragged into contraction by a drop in manufacturing, mining, construction, retail sales and household incomes, as well as falling capital investment and lower oil and gas exports. The economy ministry predicts that Russia’s GDP will shrink by 2.8% this year, but will start growing by at least 2.3% a year in 2016-18. Meanwhile, the World Bank said, Russia’s economic outlook has improved thanks to higher oil prices, and the economy will return to growth next year. It now sees the economy shrinking by 2.7% this year before growing by 0.7% next year and by 2.5% in 2017. In April, the World Bank expected Russia’s economy to contract by 3.8% this year and by 0.3% next year.
