27.03.09

Out of 3 components of GDP – consumption, capital accumulation, and net exports – only the consumption index is expected to rise, due to an increase in retail prices. The 56.8% fall of the oil target price (from an average of $95 to $41/barrel a year) was larger than the devaluation experienced by the ruble (30%). The volume of exports, in comparison with 2008, was reduced by 3.5 trillion rubles. Net exports were reduced by 2.5 trillion rubles (55%). Imports remain at the same level. The Ministry of Economic Development expects the volume of capital investments to fall by 1.2 trillion rubles (-13.8%), to 2008 levels.

Down-sizing is still taking place in Russian companies, but at a significantly slower pace, say experts of the research center portal SuperJob. Less than half of companies are down-sizing at the present moment, and 5% of employers have admitted they went too far with staff optimization, and now need to rehire personnel. Nevertheless, according to official statistics unemployment continues to rise.

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Source: "Vedomosti"