Russia's economy contracted by 3.7 percent in 2015, preliminary data showed on Monday, with a slew of activity indicators suggesting the slump is far from over. Russia is struggling to dig itself out of recession at a time when the price of oil, its main export, has seen a renewed plunge and as concerns about the global economy intensify.
Last year's 3.7 percent contraction was marginally better than a 3.8 percent decline predicted in a Reuters analysts' poll in December. However, other economic indicators published by the state statistics service on Monday showed continuing heavy falls and a deterioration compared with previous months.
Retail sales were down 15.3 percent year-on-year in December, in line with forecasts, after falling 13.1 percent in November. A larger-than-usual contraction was expected because of a temporary surge in retail sales in December 2014. However, the decline has now been in double digits for four consecutive months.
Capital investment was down 8.7 percent year-on-year, compared with a fall of 4.9 percent in November, reversing an improving trend in the latter part of 2015 that had suggested conditions facing producers were improving. Analysts had forecast a 5.1 percent decline in December.
Real wages fell by 10 percent, slightly better than a 10.4 percent fall the previous month but worse than analysts' average forecast of a 9 percent decline.
William Jackson, senior emerging markets economist at Capital Economics, said the weak activity data for December was "worrying", pointing towards a deterioration towards the end of the quarter.
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