Russia: Economy grows at steady pace in 2011
January 31, 2012
According to the flash estimate published by the Federal State Statistics Service (Rosstat) on 31 January, GDP grew 4.3% in the full year 2011, mirroring the revised 4.3% expansion recorded in 2010 (previously reported: +4.0%). The annual result reflected an improvement in domestic demand, while the external sector deteriorated compared to the previous year. Private consumption increased 6.4% in the full year 2011 (2010: +5.1%), while fixed investment expanded 6.2% (2010: +5.8%). Meanwhile, the contribution of the external sector to overall growth deteriorated compared to the previous year, as imports grew faster than exports. Exports expanded 1.0% in 2011 (2010: +7.0%), while imports increased strongly, rising 21.5% (2010: +26.1%). At the sector level, the annual result was underpinned by a strong expansion in the agricultural sector, which bounced back from a 9.7% contraction in 2010 to a 16.1% expansion, as a bumper harvest in 2011 contrasted the poor harvest experienced in the previous year amid a severe drought. Based on full-year figures, the economy grew 4.9% in the fourth quarter, which if confirmed, would mark the strongest quarterly performance since the second quarter of 2010. Currently, the government expects the economy to grow 3.7% in 2012 and 3.9% in 2013.
Author: Armando Ciccarelli, Head of Data Solutions