World Economy

Russia GDP Slumps 3.7%

Russia GDP Slumps 3.7%Russia GDP Slumps 3.7%

Consumer demand and capital investment in Russia declined in 2015, sending the economy into recession, official data showed Monday, Nasdaq reported. As two of the economy’s key drivers fell, Russia’s gross domestic product contracted 3.7% amid falling oil prices and western sanctions, according to data from the Federal Statistics Service. Russians’ real disposable incomes declined for the second year in a row, falling 4% in 2015 due to inflation that hovered above 15% for several months last year. In 2016, the oil-dependent economy is likely to contract further, analysts say, as world oil prices have fallen well below $50 a barrel, a level factored in the current version of 2016 budget.