The Russian economy contracted by 1.4% in Q1 2016, according to preliminary data of the Ministry of Economic Development. The current economic situation is not simple and the authorities continue to monitor the data. Dmitry Medvedev noted some positive developments, such as slowing inflation on an annual and monthly basis. Moreover, according to the prime minister unemployment situation is generally calm. The estimates of the Ministry of Economic Development are for GDP growth of 0.2% in 2016.
“Despite the fairly good results in individual industries as a whole pace of development of the economy unfortunately remains negative”, said the Prime Minister, Dmitry Medvedev. “No matter how terrible was the previous year as a whole managed to stabilize the situation in the economy and did not allow aggravation of the crisis. We have to do a lot to build on the positive developments and bring the economy of the state of stand-by and shift mode confident growth”, added he.
He defended the ministry of criticism that too often change their forecasts.