Economic activities in Russia decreased by 7.9 percent in 2009 after the economic crisis abruptly ended a multi-year period of strong GDP growth and highlighted the lack of reforms.
Among the hardest-hit sectors in 2009 was construction, with a decline in activity of 16.4 percent, but the services sector (hotels and restaurants) also saw a 15.4 percent drop, according to data from the statistical office. The decline in 2009 was somewhat milder than the Russian government had forecast, expecting a reduction in economic activities of 8.5 percent. In 2008, GDP grew by 5.6 percent, primarily supported by a strong rise in oil prices. Economists believe that Russia is paying the price for the lack of reforms and shortcomings in the area of economic diversification, which still heavily relies on hydrocarbons and is very sensitive to changes in energy prices. (H)
