With the highest rate of unemployment since April this year and with the ruble suffering its lowest fall in over two years, Russia’s retail sales growth came to a virtual standstill.

As per a Federal Statistics Service statement from Moscow, from October last year retail sales rose by 1.7%, while unemployment climbed from 4.9% to 5.1%; tallying with the average estimate conducted by a 16-economist Bloomberg survey. Showing a fall after three months, there was an unexpected decrease of 7% in terms of investment.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

What with the fastest inflation rate seen since July 2011 and the ruble’s nose-dive, consumer capital is on unsteady ground. This has become a thorn in the side of domestic demand, which is already afflicted by capital flight, higher interest rates and EU and US sanctions because of the Ukrainian conflict.

According to an estimate published on October 30 by a Bloomber Survey of 27 economists, there is a 70% chance that the next 12 months will witness recession.

Oil, Russia’s chief export earner, fell to its lowest in four years, prompting the central bank to cut the forecast for Russia’s economic growth last week.

A Bloomberg study rates it the worst currency among 170 others worldwide, as it declined by 20% against the dollar over the last three months.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

A base-case scenario by the central bank forecasts an expansion of 0.3% for the economy this year, but a stagnation in 2015. This is based on the assumption of a $95 average for oil prices and sanctions still prevailing till 2017 end.