Economy, stocks and currencies tumble, threatening Putin's political legacy
Last update: 6:42 p.m. EST Feb. 20, 2009
Russia's economy is expected to contract by at least 2% in 2009 after growing at an average rate of 7% in recent years. Stocks have fallen 18% this year, after losing three-quarters of their value last year, cementing Russia's place as one of the worst performing emerging markets. The ruble has lost nearly a third against the U.S. dollar since July.
"We're quite worried about the macroeconomic picture in Russia," said Lars Christensen, chief analyst at Denmark's Danske Bank.
This sprawling country of 142 million people owes its past success, and its current woes, to this decade's wild ride in commodities. Its economy heavily depends on revenue from oil, natural gas and metals. Prices in these commodity exports have plunged amid the global economic slowdown. Oil has lost 73% since hitting a record high above $147 a barrel in July.
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