Medvedev: Russia Economy Worse Than Expected

Facing its first recession in a decade, Russian President Dmitry Medvedev announced today the economy was suffering worse than expected.

The Russian economy was expected to contract by 3 percent for 2009, but revised forecasts show a 7.5 percent contraction. "I must admit that we sunk below our lowest expectations," Mr. Medvedev told Channel One, "The real damage to our economy was far greater that anything predicted by ourselves, the World Bank and other expert organizations." Industrial production fell by 14 percent and low commodity prices have slowed Russia's oil dependent economy. Much like the United States, Russia, is facing a sizable budget deficit expected to total 5 percent of GDP. "But it's not a tragedy, not a disaster for the economy," Medvedev said. Russia is seeing some signs of progress, however, as inflation is falling and the ruble, Russia's currency, is strengthening internationally and oil prices hovering around $70 are alleviating some of the recessions pain.