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.