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Russian economy plummets 10.1%
By Catherine Belton in Moscow
Published: July 15 2009 19:47 | Last updated: July 16 2009 15:34
Russia’s economy shrank 10.1 per cent in the first half of this year, the economy minister said on Wednesday, its worst decline since the early 1990s.
Russian recession eases, data shows
MOSCOW - Capital investment and real income in Russia rose strongly in June, the Federal Statistics Agency reported on Monday, suggesting the country may be past the fiercest phase of its recession.
Capital investment jumped 11.8 percent on the month in June, the agency said, a sign that investors have regained some confidence in the country's economic stability. Capital flight had badly hurt the Russian economy, exacerbating the effects of the global credit crunch.
Other statistics released Monday also indicated that Russia's economy has passed its lowest point. Real disposable income rose 3.7 percent month-on-month and was down 1 percent year-on-year. Retail sales grew 2.4 percent.
The jobless rate shrank to 8.3 percent in June, the lowest level since December's 7.7 percent, although analysts said this could largely be explained by seasonal factors. Unemployment peaked at 9.5 percent, or 7 million people, earlier this year.
Yulia Tsyplyaeva, chief economist at Meryll Lynch, said that the overall improvement in June's statistics showed the economy was stabilizing. "We should not expect this sharp decline to continue and there are certain signs of recovery."
Russia has been weathering its worst recession in a decade following a crash in commodity prices, flagging foreign investment and a squeeze on credit markets.
Government forecasting an 5.5% to7.5 percent decline for the year.