Russia: Economy slows further in Q2
June 14, 2011
In the first quarter, GDP expanded 4.1% over the same period last year, according to revised estimates from 14 June. The reading was slightly below the 4.5% year-on-year growth tallied in Q4 2010 and confirmed the results of the preliminary estimate released on 16 May. The moderation was driven by slower growth in two of the three main economic activity sectors. In particular, services expanded 1.7%, which was down from the 3.0% recorded in the previous quarter, while industry grew 7.6%, slightly down from the 8.1% increase recorded in Q4 2010. In contrast, agriculture expanded 2.8%, contrasting the 7.1% plunge recorded in the previous quarter and marking the first quarter of positive growth after two consecutive contractions, as the impact of the severe drought and devastating wildfires that afflicted key agricultural areas during the summer months waned in the first quarter. A quarter-on-quarter comparison corroborates the moderation suggested by annual figures, as the economy expanded a seasonally adjusted 1.08% in Q1, down from the 2.24% expansion recorded in the previous quarter. The Ministry of Economic Development expects the economy to expand 4.2% in 2011. In 2012, the Ministry sees economic growth moderating to 3.5%.
Author: Armando Ciccarelli, Head of Data Solutions