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Russia's economy has been in recession for 18 months
by Ivana Kottasova @ivanakottasovaAugust 11, 2016: 10:35 AM ET Russia has just marked 18 months of a deep and painful recession.
The country's economy was 0.6% smaller in the second quarter of 2016 than the same period last year, according to official data published on Thursday.
But there is a glimmer of hope for Russians who have seen their living standards suffer over the last year and a half -- the pace of the slowdown is starting ease. The economy shrank by 1.2% in the first quarter, following a 3.7% plunge in 2015.
Russia has been hit by a double whammy of low oil prices and economic sanctions, and has not grown for six consecutive quarters.
The sanctions imposed on Moscow over its role in the crisis in Ukraine have severely curtailed investment into the country, and cut Russian firms off from European and American finance.
President Vladimir Putin slashed spending across his government to deal with the crisis. He even cut his own salary by 10% in 2015.
Related: Russians are getting angry about the economy
The ruble crashed against the dollar in 2015, pushing inflation up into double digits. Inflation has since eased but prices were still rising by 7% in July.
Millions of Russians have fallen into poverty since 2014, as a Russian embargo on most food imports from the West pushed prices even higher. Real wages dropped 10% last year.
There have even been several protests against the economic crisis -- a rare sight in a country where political demonstrations are often banned.
Russia holds parliamentary elections next month and the country's leaders are trying to reassure voters that the economy is finally turning the corner.
The government raised the minimum wage by 20% in July, and the central bank said this week it expects Russia to return to "slow growth" in the coming months, barring any new shocks.
The IMF expects Russian economy to shrink 1.2% this year, before returning to growth next year.
CNNMoney (London) First published August 11, 2016: 10:35 AM ET
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Poor, poor, poor Putin. What goes around is now coming around very sloooooowly and painfully. I think we're seeing less Russians in Pattaya since the rubble collapsed under the crumbling oil prices. They used to come around in packs of families, and their kids were having fun walking around all over the place shopping and eating. They don't speak English, and I don't speak their language. Saw a pair of young girls tasting some cooked bugs on Beachwalk. Lots of thick Russians eating at that outdoor breakfast buffet at that fancy hotel on Beachwalk. They were an economic boom. Saw some young high school or college kids on the double-decker boat to Ko Lan and thought they were good-looking healthy kids who behaved well. Saw some very good-looking Russian girls who hook. Can tell by the way they walk and dress. Really beautiful with their bleached blonde hair like California surfing girls. One was walking with a Asian tourist acting like his arm candy in Central Festival. She must have been on a girlfriend experience date and so good when she looking lovingly into his eyes. Had her slender arm around his waist, and her face looked like she was saying, "What shall we do next?" She was good at what she does. So normal and having lots of fun. Nothing like the evil empire the US newspapers portrayed them to be. Image if you're Russian and planning to visit Pattaya. Who will change your unpredictable rubles? Will anybody receive your credit cars? Must have to go through a lot of trouble to buy dollars or Bahts before you arrive. Poor, poor, poor Putin. Bad luck for Roysheeya. This how Russians pronounce it? And less tourists for Thailand. Sad. They were interesting to people watch. Never saw so many Russians in my life.
by Ivana Kottasova @ivanakottasovaAugust 11, 2016: 10:35 AM ET Russia has just marked 18 months of a deep and painful recession.
The country's economy was 0.6% smaller in the second quarter of 2016 than the same period last year, according to official data published on Thursday.
But there is a glimmer of hope for Russians who have seen their living standards suffer over the last year and a half -- the pace of the slowdown is starting ease. The economy shrank by 1.2% in the first quarter, following a 3.7% plunge in 2015.
Russia has been hit by a double whammy of low oil prices and economic sanctions, and has not grown for six consecutive quarters.
The sanctions imposed on Moscow over its role in the crisis in Ukraine have severely curtailed investment into the country, and cut Russian firms off from European and American finance.
President Vladimir Putin slashed spending across his government to deal with the crisis. He even cut his own salary by 10% in 2015.
Related: Russians are getting angry about the economy
The ruble crashed against the dollar in 2015, pushing inflation up into double digits. Inflation has since eased but prices were still rising by 7% in July.
Millions of Russians have fallen into poverty since 2014, as a Russian embargo on most food imports from the West pushed prices even higher. Real wages dropped 10% last year.
There have even been several protests against the economic crisis -- a rare sight in a country where political demonstrations are often banned.
Russia holds parliamentary elections next month and the country's leaders are trying to reassure voters that the economy is finally turning the corner.
The government raised the minimum wage by 20% in July, and the central bank said this week it expects Russia to return to "slow growth" in the coming months, barring any new shocks.
The IMF expects Russian economy to shrink 1.2% this year, before returning to growth next year.
CNNMoney (London) First published August 11, 2016: 10:35 AM ET
++++++++++
Poor, poor, poor Putin. What goes around is now coming around very sloooooowly and painfully. I think we're seeing less Russians in Pattaya since the rubble collapsed under the crumbling oil prices. They used to come around in packs of families, and their kids were having fun walking around all over the place shopping and eating. They don't speak English, and I don't speak their language. Saw a pair of young girls tasting some cooked bugs on Beachwalk. Lots of thick Russians eating at that outdoor breakfast buffet at that fancy hotel on Beachwalk. They were an economic boom. Saw some young high school or college kids on the double-decker boat to Ko Lan and thought they were good-looking healthy kids who behaved well. Saw some very good-looking Russian girls who hook. Can tell by the way they walk and dress. Really beautiful with their bleached blonde hair like California surfing girls. One was walking with a Asian tourist acting like his arm candy in Central Festival. She must have been on a girlfriend experience date and so good when she looking lovingly into his eyes. Had her slender arm around his waist, and her face looked like she was saying, "What shall we do next?" She was good at what she does. So normal and having lots of fun. Nothing like the evil empire the US newspapers portrayed them to be. Image if you're Russian and planning to visit Pattaya. Who will change your unpredictable rubles? Will anybody receive your credit cars? Must have to go through a lot of trouble to buy dollars or Bahts before you arrive. Poor, poor, poor Putin. Bad luck for Roysheeya. This how Russians pronounce it? And less tourists for Thailand. Sad. They were interesting to people watch. Never saw so many Russians in my life.
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