Moody’s rating agency projects Russia’s GDP will decline by 4% in 2015 and by 1% in 2016, vice president and senior analyst Alexander Proklov said at Retail risk management-2015 forum on Tuesday.
According to the agency, recession will continue in Russia amid slow recovery of crude prices.
“This time around recession will last longer than it was in 2008-2009. Oil prices will still be volatile though at comparatively low levels,” Proklov said.
Moody’s also expects the current sanctions mechanism to maintain. “We expect inflation to keep high next year as well amid current conditions. Meanwhile consumer spending will go further down,” Proklov said.Russia’s Central Bank is unlikely to aggressively reduce its key interest rate due to high inflation, the expert added.