BOFIT Weekly Review 2015/01
Russian GDP contracts in November; inflation soars
The economy ministry estimates 12-month GDP fell 0.5 % in November. While much of the drop reflected a sharp decline in manufacturing output, the dynamics in construction, wholesale and agricultural output were also disappointing. Russia last saw a GDP contraction in 2009.
The finance ministry estimates that on-year inflation climbed to over 11 % by the end of December. Again, the last similar spike in inflation in Russia occurred during the 2009 recession. The biggest factor driving inflation in the final months of the year was the ruble’s collapse.