Russia: Economy gains momentum in Q2
August 11, 2017
The Russian recovery continued to pick up steam in the second quarter of 2017. A preliminary estimate released by the Federal Statistics Service (Rosstat) on 11 August showed that GDP increased 2.5% year-on-year in Q2. The result followed a meagre 0.5% expansion registered in Q1 and notably outshot market analysts’ expectations of a 1.8% increase. More detailed data including a breakdown of components will be released on 29 September.The economy is expected to return to growth in 2017 after two years of falling activity, thanks to recovering private consumption and fixed investment. Higher oil prices should also help shore up government revenues and support exports. Economists project that the economy will expand by 1.3% in 2017, which was left unchanged from last month’s forecast. For 2018, analysts see GDP growth accelerating to 1.7%.