Russia: GDP slows in Q2
September 6, 2013
GDP grew 1.2% in the second quarter over the same period last year, according to figures published by the Federal State Statistics Service (Rosstat) on 6 August. The result was in line with the flash estimate published on 9 August and represents a deterioration compared to the 1.6% expansion recorded in Q2. In addition, the reading marks the slowest expansion since Q4 2009. At the sector level, the weak reading was largely a result of a slowdown in both the agricultural and services sectors. Agriculture expanded a 0.3%, which was down from the 2.3% expansion recorded in Q2. Services slowed from a 3.3% expansion in Q1 to a 2.2% rise in Q2. Finally, industry contracted 0.4%, which was nonetheless an improvement on the 1.2% drop recorded in Q1. The government recently revised down its growth forecasts for both this year and next. In 2013, the economy is expected to grow 1.8%, down from the 2.4% the government had previously reported as the projected growth rate. Next year, the government believes that the economy will grow between 2.8% and 3.2% (previous projection: 3.7%). FocusEconomics Consensus Forecast panelists expect GDP to grow 2.4% in 2013, which is down 0.2 percentage points from last month's forecast. Next year, the panel sees the economy growing 3.5%.
Author: Armando Ciccarelli, Head of Data Solutions