Russia: Economy slows further in Q2
September 8, 2011
In the second quarter, GDP expanded 3.4% over the same period last year, according to revised estimates from 8 September. The reading was below the 4.1% year-on-year growth recorded in Q1 but confirmed the results of the preliminary estimate released on 11 August. The moderation was driven by slower growth in two of the three main economic activity sectors. In particular, agriculture expanded 1.0%, which was down from the 2.8% recorded in the previous quarter, while industry grew 4.9%, down from the 7.6% increase recorded in Q1. In contrast, services expanded 2.1%, marking a small improvement compared to the 1.7% rise recorded in the previous quarter. A quarter-on-quarter comparison corroborates the moderation suggested by the annual figures, as the economy expanded a seasonally adjusted 0.16% in Q2, down from the 0.99% expansion recorded in the previous quarter. The Ministry of Economic Development recently revised its forecast for GDP growth and now expects the economy to expand 4.1% in 2011, down from the previously forecasted 4.2%. In 2012, the Ministry sees economic growth moderating to 3.7%, slightly up from a previously expected 3.5% expansion.
Author: Armando Ciccarelli, Head of Data Solutions