Russia’s economy still struggling

There is little evidence in June’s activity data that Russia’s struggling economy is about to turn the corner. All told, it seems that GDP grew by around 1.5-2.0% y/y in the second quarter – broadly unchanged from the pace of expansion in Q1, which itself was the weakest since the aftermath of the global financial crisis. What’s more, there is no sign either of much-needed rebalancing in the drivers of Russia’s economy.