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BRIEF

Russia's Monthly Economic Developments

January 16, 2015

Highlights

  • The retreat in crude oil prices continued in December and the first half of January with oil prices falling below US$50 per barrel for the first time since 2009.
  • The continued downward adjustment in oil prices amplified the Russian currency crisis and the increasing risk to the financial sector, to which the authorities reacted with coordinated stabilization measures.
  • Inflation soared into the double digits at the end of 2014 despite the CBR’s tightening.
  • The 2014 federal budget is expected to be in deficit due to measures to recapitalize Russia’s banking sector.
  • The World Bank further lowered its 2015 growth projection for Russia to -2.9 percent from -1.5 percent.