Russia Experiencing Recession Now, Says IMF

Moscow, April 30 (QNA) -Russia is “experiencing recession now” because of damage caused by the Ukraine crisis, the International Monetary Fund (IMF) has said.

The fund, which cut its growth forecast for Russia, said $100bn (?59bn) would leave the country this year,reported the BBC.

Antonio Spilimbergo, the IMF’s mission chief in Moscow, said international sanctions were damaging the economy and threatening investment.

Russia’s economy contracted in the first three months of this year.

But Spilimbergo said he expected that to continue.

The IMF cut its 2014 growth forecast for Russia to 0.2% from 1.3% and said it expected the country’s economy to grow by only 1% next year.

Credit ratings agency Standard & Poor’s has already cut Russia’s rating to one notch above “junk” status.

And last week Russia’s central bank raised its key interest rate from 7% to 7.5% in an effort to defend the value of the rouble, which has lost more than 8% against the dollar so far this year.(QNA)

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