Russia GDP Growth Confirmed At 0.5% In Q1


The Russian economy advanced 0.5 percent year-on-year in the first three months of 2017, in line with preliminary estimates and following a 0.3 percent expansion in the previous quarter. A rebound in mining, manufacturing and trade and a jump in transportation boosted growth, final figures showed. The economy returned to growth after a two-year recession that was mainly caused by low oil prices and sanctions imposed on Russian individuals and businesses in response to the annexation of Crimea.

Recoveries were seen in mining (3.5 percent from -0.1 percent in Q4 2016), manufacturing (1 percent from -0.6 percent) and wholesale and retail trade (0.2 percent from -0.6 percent). The output for transportation and storage (3.3 percent from 1.2 percent) expanded faster. In contrast, a slowdown was seen for utilities (0.9 percent from 5.5 percent) and financial activities (0.1 percent from 1.7 percent).  

On the other hand, main declines were seen in contruction (-4.5 percent from -1.9 percent); health and social services (-1.9 percent from -1.7 percent); agriculture (-0.9 percent from +3.2 percent) and real estate (-0.9 percent from +1.2 percent).

The central bank recently increased its GDP growth forecasts for 2017 to 1.3-1.8 percent from 1-1.5 percent. 

Joana Taborda | joana.taborda@tradingeconomics.com
6/16/2017 1:40:18 PM