Russia’s Economic Development Ministry: GDP Growth Expected at 1.5% in QIV’2019

UrBC, Moscow, October 21, 2019. Russia’s GDP growth in the third quarter of 2019 exceeded that for the third quarter of 2018 by 1.9%, the Economic Development Ministry’s report (available on the ministry’s website) states.

Russia’s GDP rose by 1.2% since January 2019 and by about 2% in September 2019 compared with September 2018. At the same time, the increase in the country’s GDP was sporadic and was brought about by incidental occurrences, the ministry says.

According to the ministry, the increase in the GDP in the second half of 2019 compared with the first half of the year has to do with the growing stocks; this, in its turn, was caused by ongoing stable industrial performance, good harvests in the agricultural sector, and low internal demand. Given that the consumer demand is expected to keep dropping, the country’s GDP growth might slow down to 1.4%-1.5% in the last quarter of 2019 compared with the last quarter of 2018.

Based on the Economic Development Ministry’s estimates, growing stocks were responsible for approximately 0.8% of the overall GDP increase. Recovering exports and industrial production were each responsible for about 0.6% of the overall GDP increase.


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