All articles tagged with #oil revenues
Russia's economy has entered 'technical stagnation' with growth approaching zero, driven by high interest rates, inflation, and declining oil revenues, raising concerns about a potential recession amid ongoing fiscal and geopolitical challenges.
Russia's GDP contracted by 1.9% in Q1 2023 due to sanctions imposed over its offensive in Ukraine, including a ban by the EU on Russian petroleum products, and a price cap agreed with the G7 and Australia. Oil revenues were down 43% compared to a year ago, impacting the budget deficit, which hit 3.4 trillion rubles ($42.3 billion) between January and April. The public sector deficit could reach between 3-4% of its GDP, higher than the 2% target. Russia's low unemployment rate of 3.5% is a symptom of its shrinking labor force.
The Russian ruble fell to its lowest level in a year due to Moscow's weakening oil revenues and fears over capital flight. The ruble has fallen 4.4% this week against the dollar and 5.2% against the euro, running counter to a broader trend among global currencies, which have gained against the dollar in recent weeks.