A sharp revision in Russian’s economic forecast has led to a warning from the government that the country’s economy will fall into recession next year Falling oil prices are starting to bite.
Crude gave up some of its gains from late on Monday but remained above the multi-year lows reached earlier. Russia’s reliance on tax revenues from the oil industry makes it particularly sensitive to the current price movements.
Household incomes are also predicted to be hit with domestic disposable revenues forecast to fall by as much as 2.8 percent compared with a previous estimate that they would grow by 0.4 percent.
There was more gloom on the exchange markets. The rouble gave up early gains on Tuesday with the warning of recession. It was down 1.7 percent against the dollar and trading 1.3 percent weaker against the euro.