Russia’s economy facing worst contraction since 1994

The Bank of Russia had expected a contraction between 8% and 10% this year. The International Monetary Fund forecast one of 8.5%, while a Bloomberg survey of economists found a median decline of 10.3%.

MOSCOW: Russia is facing the deepest economic contraction in nearly three decades as pressure from sanctions imposed by the United States and its allies mounts, according to an internal forecast by the Finance Ministry.

Gross domestic product is likely to shrink as much as 12% this year, deeper than the 8% decline expected by the Economy Ministry, according to sources.