Cbank: Russia’s fixed investment may rise 1.5–2% in Jan–Mar

MOSCOW, Feb 7 (PRIME) – Russia’s annual fixed assets investment may grow by 1.5–2% in January–March, the central bank said in a research note on Friday.

Investment in fixed capital in October–December 2019 remained flat on the quarter at 0.8%.

“Strengthening of the ruble and softening of the monetary conditions in the second half of 2019 provided support to investment activity. In December 2019, factors of investment activity signaled prolongation of the tendency for an increase in investment into fixed capital,” the research note read.

Production of investment goods and railway transportation of construction materials grew year-on-year in January after a contraction in December, and expansion of investment imports from non-CIS countries sped up in the month. Implementation of national projects should continue having a positive impact on investment activity this year, the central bank said.

“Taking into account the mentioned factors and the low base of the previous year, the annual growth dynamics of investment into fixed capital may stay in the range of 1.5–2% in the first quarter of 2020,” the regulator said.

The increase of real wages in the country should speed up to 3.5–4% in January–March from the average growth of 2.5–3% in 2019 due to continuous slowdown of inflation and due to a 5.4% indexation of wages to employees of the social and cultural spheres, the authority said.

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