Russia: GDP growth moderates less than expected in Q3
November 13, 2014
Russia’s economy was stronger than expected in the third quarter, according to a preliminary flash estimate released by the Federal Statistics Service (Rosstat) on 13 November. GDP rose 0.7% over the same period last year in Q3, which came in only slightly below the 0.8% expansion registered in Q2. The reading also overshot the milder 0.3% rise the markets had expected.
Although a detailed breakdown of the GDP components is not released with the preliminary estimate, analysts suggests that the stronger-than expected Q3 increase stemmed from still strong growth in agricultural and manufacturing output (on a production-based classification). On an expenditure approach, analysts pointed out that a strong restocking of inventories contributed positively to growth. On a sequential basis, analysts suggest that GDP increased around 0.4% in seasonally-adjusted terms in Q3, which followed the 0.3% rise observed in Q2.