Russia recession deepening, solid growth elsewhere

While Russia is sinking into recession, other countries are enjoying reasonable growth within the 2.5-3.5% range. Central Europe growth has been gaining momentum and now leads the region. 

Economic growth is expected in Turkey to remain at about 3% in 2015-16, as it seems to be stuck, and structural reforms are needed to lift the potential growth, says Barclays. 

Russia's recession is the result of lower global energy prices that have cut into exports, while Western sanctions have adversely affected foreign financing. 

Consumption is leading domestic demand higher as low inflation from declines in food and energy prices along with stable wage growth have boosted retail sales. 

Russia's recession is unfolding largely as expected as the double hits from sanctions and lower oil prices push real GDP lower. 2016 forecast is -0.7%, anticipates Barclays. The growth decline is part of the adjustment process.