Russia: GDP slowdown confirmed in Q2
September 17, 2014
The Russian economy decelerated slightly in the second quarter, according to more complete data released by the Federal State Statistics Service (Rosstat). GDP rose 0.8% over the same quarter of last year, which matched the preliminary estimate and was slightly below the 0.9% increase the economy tallied in the first quarter of the year. The reading represented the lowest print since Q4 2009, when the economy contracted a sharp 2.6%.
Q2’s result showed that services decelerated notably compared to the previous quarter, growing a mild 0.4% annually in Q2, which came in well below the 1.5% expansion tallied in the previous quarter. Conversely, agriculture bounced in the second quarter and expanded 1.0%, which contrasted the 0.8% contraction observed in Q1. In addition, the industrial sector increased 2.2% over the same quarter last year. The reading marked an improvement over the 0.5% expansion registered in Q1.
A quarter-on-quarter comparison showed that GDP increased 0.25% in seasonally-adjusted terms in Q2, which came in above the 0.07% rise registered in Q1.
Author: Ricardo Aceves, Senior Economist