You are here

Putin lets consumers feel the pain as slump deepens in Russia

Little help as Russia's public finances have deteriorated with plunge in oil prices

Household consumption accounted for most or all expansion in GDP between 2010 and 2013, the World Bank says. It contributed 3.8 percentage points to GDP gains in 2012 and 2.3 percentage points the following year. Now most consumer indicators are flashing red.


RUSSIAN households are bearing the brunt of the blowback from the crisis in Ukraine and a tailspin in oil prices, setting the stage for the biggest drop in consumption in more than two decades that will deepen the country's recession.

Crushed by a 44 per cent slump in the