Expert says the worst is yet to come for the Russian economy

The head of the Higher School of Economics' Center for Development, Natalya Akindinova, explained that January economic data indicated that the Russian economy has started to worsen.

“This relates in particular to construction, cargo turnover and trade. The total fall in basic industries in January was 0.4-0.6% lower than December without taking into account seasonal fluctuations. The huge lack of growth has been accumulated in real incomes and consumer demand, and its downside potential has not yet been exhausted, as far as both private entities and public sector industries continue to reduce costs. That’s why there is a high likelihood that the bottom or in other words the ‘spike’ lies ahead,” Akindinova told a Rosbalt correspondant during an interview.

According to her, the overwhelming majority of experts participating in the consensus forecast of the National Research University’s Higher School of Economics are expecting a continuing recession in 2016, and some of them believe it will continue in the following years as well.

“Economic recovery is directly linked to oil prices. Even if oil prices readjust in the coming months, nothing will prevent them from falling and triggering a depression,” Akindinova concluded.

  Russia, Economy of Russia