Russia's Economy Showing Signs of Slowdown


Recent updates for Russia indicate the economy is cooling down. In the first quarter of 2013, the GDP grew 1.6 percent yoy, the smallest expansion since the fourth quarter of 2009, hurt by lower demand for commodity exports and drop in investment.


The slowdown in global demand along with flat commodity prices has been hurting Russia's exports recovery. In the first quarter of 2013, shipments fell by 5.2 percent yoy.


Consumer confidence declined throughout 2012 and remains feeble at -7 in the first quarter of 2013. In April, retail sales growth slowed to 4.1 percent yoy, from 4.4 percent in the previous month. 


In April, inflation rate increased slightly to 7.2 percent. Since the CPI is above 5 to 6 percent target set by the Central Bank of Russia, interest rate cuts are unlikely in the next few months.

Russian industrial-output growth has been slowing down as a stalling economy and weakening exports hurt demand. In April, industrial production grew 2.3 percent yoy after 2.6 percent increase in March.


Nuno Fontes | nuno@tradingeconomics.com
5/24/2013 1:57:21 PM