The State of the Economy and Prospects for the Immediate Future

The Russian Federation's economy approached the beginning of 1992 in a state of deep crisis that had taken on features of uncontrollability. In 1991 the gross national product (GNP) declined by 17 percent; industrial output, by 8 percent. Acute shortages in all commodity markets were accompanied by steadily rising rates of inflation: according to official data, wholesale prices in industry rose 3.4-fold during the year; retail prices, 2.5-fold. In November and December prices were no longer under the state's control.