Russian President Vladimir Putin warned on April 15 that given the world’s economic state, Russia was in jeopardy of performance reduction, reports Yahoo Finance. Fearful that the Russian economy was on the verge of recession, Putin commissioned Prime Minister Dmitry Medvedev to organize a special meeting with Kremlin and government officials to address the impending fiscal danger.
Putin warned of a possible recession as he compared their current situation with the effects that the global crisis had on Russia back in 2008 and 2009.
According to Yahoo Finance, Putin stated, “This happened in 2008 and this what we are witnessing today.”
When Russia was in a similar situation back in 2009, their economy contracted by over 10 percent as a consequence of the financial meltdown. However the country’s banks and economy were rescued thanks to the government replenishing the frozen banking sector with over billions of dollars and investing in nearly depleted industries. Despite the financial bandaid, the Russian economy experienced slow recovery and only progressed to half the rate it had reached before the crisis.
The economy had a disappointing year in 2012, earning only a 3.4 percent in growth. Since this modest growth, rates have only been dropping. Economic ministers have been forecasting a negative quarterly growth by the end of 2013, possibly some time around autumn season.
Andrei Belousov, the Russian economic minister, stated, “We are not in a recession yet, but we could end up there.”
Medvedev is scheduled to meet with constituents on April 17 to discuss and announce the economic plan in an annual address to parliament.
Read the full article at Yahoo Finance here.
