MOSCOW, May 6 (Reuters) - Russia’s economy is likely to shrink in the second quarter of 2014, which would be the second quarter of contraction in succession, state-run news agency RIA reported on Tuesday.
It quoted Maxim Oreshkin, director of the ministry’s long-term planning department, as saying output of electricity, freight transport and gas production had been weak in April and that business activity indicators did not give reason for optimism.
“Everything points to GDP for the second quarter declining compared with the previous quarter, seasonally adjusted, for the second time in a row,” Oreshkin was quoted as saying.
He said economic performance in the third quarter would depend largely on the level of geopolitical uncertainty and how sharply bank lending slowed against the background of a rise in the central bank’s key interest rate and a substantial rise in money market rates. (Reporting by Nigel Stephenson)