It does not seem to excite Russians terribly much, and it is hardly noticed in the U.S. and Europe, but Russia's GDP just dropped 10.9 percent in the second quarter. That comes after a 9.8 percent drop in the first quarter. This is grim.
The go-go economies of Moscow and St. Petersburg also seem to be deteriorating. Restaurants see a 20 percent drop in business. Can the madcap nightclub life of Moscow be far behind?
President Medvedev is calling for investigation of state-owned enterprises, thought to be hubs of inefficiency, waste and corruption. A new restructuring may be in order in the long run. In the short term, should we expect firings?
Regardless, Russia seems to be suffering a recession that may be wider and deeper than that which afflicts America. It also may last longer.