Russia at Odds Over Fiscal Stimulus as Consumer Pinched

Russia cut its forecasts for economic growth and consumer spending, leaving the ministries of finance and economy at loggerheads over using fiscal stimulus to counter risks from the crisis over Ukraine.

Gross domestic product will rise 1 percent in 2015, compared with an earlier estimate of 2 percent, the Economy Ministry said today. This year’s projection was kept at 0.5 percent, the slowest since a contraction in 2009. Consumer spending, which accounts for half of GDP, is also set to slow this year and next, according to the ministry.