Quarter contraction in the economy of Russia / 1 under the weight of sanctions and falling oil

  

Russian statistics body said on Friday, citing preliminary data that the Russian economy contracted by 1.9 percent on an annual basis in the first quarter of the year, under the weight of Western sanctions and the decline in energy prices.

© REUTERS Russia's economy contraction / 1 quarter under the weight of sanctions and falling oil data came largely in line with estimates unveiled by Prime Minister Dmitry Medvedev and officials at the Ministry of the economy during the last month, but some analysts said the figure was better than expected.

Russia's economy has slowed severe slowdown since early last year due to Western sanctions imposed on Ukrainian Moscow because of the crisis and the sharp decline in oil prices, the main export commodity of the country.

However, financial stability conditions which turned out in the local currency recovery ruble brightest hopes that the worst has passed, thanks to a partial recovery in oil prices and a peace deal in February in Ukraine.

Was Economists polled by Reuters had expected the economy to shrink by 4.1 percent in 2015. The government officially predicted contraction rate of three per cent, but officials now say that this overly optimistic assessment.

A senior emerging markets experts at Capital Economics Foundation "Best said of the GDP in the first quarter of the data is that the economy avoid a total collapse and that on the brink of recession."

He added, "There are not many reasons to justify growing optimism for policymakers and some market analysts .. economy is still on track to shrink by 2.5 per cent or so in 2015."