Russia’s economy continued to shrink in the second quarter, but the contraction in GDP moderated as the country, which fell into a deep recession last year, gradually recovers.

GDP shrank by 0.6 per cent in the second quarter, year-on-year, but this was less severe than the 0.8 per cent contraction anticipated by economists and better than the 1.2 per cent drop in the first three months of the year.

Russia’s economy went into reverse last year following the sharp drop in oil prices since mid-2014 and as it felt the effect of Western sanctions imposed over the country’s role in the Ukraine crisis.

The OECD, the Paris-based think tank, expects the Russian economy to shrink by 1.7 per cent this year, following last year’s 3.7 per cent drop in GDP, before returning to growth in 2017.

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