Russia’s economy is poised to shrink much more than previously expected, the country’s economy ministry said on Tuesday, according to media reports. The ministry now expects overall gross domestic product to shrink by 0.8% in 2015, down from a previous estimate of growth of 1.2%.
It also predicts the economy will slip into recession in the first quarter of the year. The oil price forecast was cut to $80 a barrel from $100 a barrel, according to Dow Jones Newswires. The ruble USDRUB, +1.68% slipped after the news, with the dollar buying 51.67 rubles, up from around 51.25 rubles earlier Tuesday morning.