Econ ministry raises Russia’s August GDP growth estimate to 2.7%

MOSCOW, Oct 30 (PRIME) -- The Economic Development Ministry has increased its August economic growth estimate to 2.7% from 2.3% in annual terms, the ministry said in a report on Monday.

In September, the GDP increased 2.4% on the year, the ministry said. The ministry estimated GDP growth at 2.2% on the year in July–September and at 1.8% in January–September.

Fixed capital investment in Russia grew 3.6–4% on the year in July–September. “Lower growth in annual terms (from 6% in April–June) happened due to depletion of the low base effect of the first half of 2016. In the year, fixed capital investment may grow 4.1%,” the ministry said.

The ministry also expects real wages to grow quicker in October–December and support a further increase of consumer demand.

“Over the past months, wage dynamics was highly volatile. Nominal wages dynamics fell to less than 6% in August and September from 7–8% in June–July. The slowdown of the wage growth in real terms was less significant thanks to contraction of inflation dynamics to a historic minimum,” the ministry said.

It said that changes in wages were likely of a seasonal character and happened due to a large amount of vacations as wages are usually paid before vacations.

End