Figures out today show how hard the world economic slump has hit Russia.
The gross domestic product declined by 10,5 per cent in April, 9,8 per cent overall in the first four months of the year. It all makes grim reading for the Kremlin. President Medvedev has been warned that the slowdown will be worse than expected, as much as eight per cent by the end of the year. The President has told his ministers to err on the conservative side as far as the oil price is concerned when putting together their predictions for the economy’s recovery. The fall in oil and gas revenues has hit Russia hard, and few analysts expect the price to rise much in the near future. The world slowdown has meant lower demand for Russian exports, and the once-buoyant economy has also seen a fall in consumer spending at home.