Russia Monthly Economic Developments

September 16, 2015

  • Oil prices fell to US$40 per barrel by the end of August, increasing the pressure on the ruble.
  • July statistics showed a broad-based contraction in economic activity due to a further deterioration in investment demand and continued weakness in household consumption.
  • Moderate inflation pressures resumed in August, with both headline and core inflation increasing slightly.
  • In early September the Ministry of Finance announced plans to change the 2016 budget proposal and shorten the budget planning horizon.
  • Credit growth remains constrained as banks’ lower profit margins make them risk averse.


Birgit Hansl

Program Leader and Lead Economist for the Russian Federation