Econ ministry: Russia’s GDP rises 1% on year in October

MOSCOW, Dec 4 (PRIME) -- The growth of Russia’s gross domestic product (GDP) slowed down to 1% on the year in October from 2.4% in September, the Economic Development Ministry said in a report published on Monday.

“GDP increase slowed down to 1.8% year-on-year in the third quarter of 2017 to 2.5% year-on-year in the second quarter of 2017, which was worse than expected by the market and a 2.2% increase expected by the Economic Development Ministry. In October, economic growth dynamics slowed down to 1% year-on-year,” the report read.

An OPEC+ oil output reduction deal had a generally positive impact on the Russian economy, but unfavorable dynamics in producing industries and sectors connected with them, a decline in the processing industry, and a slowdown in restoration of lending provided a negative momentum for the GDP, the ministry said.

“The factors are temporary, and they do not point to a worsening quality of economic growth and do not form risks for consistency of growth in future,” the ministry said.

The authority still expects the Russian economy to rise about 2% in 2017. The the Federal State Statistics Service’s GDP data for January–October is based on incomplete information.

“A more accurate estimate of GDP dynamics for 2017 will be possible only after we have received annual data of small and medium-sized enterprises, and additional information from annual reports of large and medium-sized companies,” the ministry said.

Previously, the Federal State Statistics Service said that Russia’s GDP increased 1.6% in January–September, while the ministry said that the growth amounted to 1.8%.

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