Russia’s economy sees 13.9% growth in Q3
Statistics body Rosstat has today announced that Russia’s economy expanded by 13.9% in the third quarter compared with the second quarter.
However, when compared with the same period a year ago, the Russian economy contracted by 8.9%.
The economy, which is heavily reliant on oil exports, has suffered from a severe downturn but the latest figures show that Russia is on the road to recovery as a result of the rebound in oil prices.
Russia’s Economics Ministry is predicting the economy will contract 8.5% in 2009, but will see growth of 3% in 2011 and 4.3% in 2012.
Earlier this week, the World Bank forecast Russia’s economy would contract 8.7% in 2009 and predicted only a very weak recovery in 2010.
In related news, Russia’s largest retail bank Sberbank announced yesterday it would reduce headcount by 25% – or 67,000 jobs by 2014.
However, around 27,000 of the jobs will be axed by the end of 2009, said the bank.
The bank, which is state-controlled, has been hit by the economic downturn and the cuts are part of a modernisation plan.