Min sees Russia’s GDP growth at 2% per month until end of 2018

ST. PETERSBURG, Sep 21 (PRIME) -- Russia’s gross domestic product (GDP) is expected to grow around 2% per month until the end of this year, Economic Development Minister Maxim Oreshkin told reporters on the sidelines of a forum on Friday.

In September, the economy will grow at a higher pace than in August, he added.

Under the ministry’s preliminary estimates, GDP growth slowed to 1% in August from 1.8% in July and amounted to 1.6% in January–August. The ministry expects GDP to rise 1.8% in 2018.

“There is a very serious negative contribution by the agriculture industry, connected with the harvest. But it’s clear that it is a one-time effect, it certainly significantly lowered the figure (of GDP growth). There will not be such a negative effect in the coming months… In September, growth will certainly be higher than in August, it will be around 2% until the end of the year,” Oreshkin said.

In January–March 2019, GDP growth may slow below 1%, but there are no fears that the Russian economy will enter a recession, he also said.

“I’ve already said that GDP growth may fall below 1% in the first quarter. The effect from switching from one rate of value-added tax (VAT) to another and an impact of financial markets volatility on credit activity will be short-term and will take place in the first quarter. This point will be the weakest. Even in the most negative scenario, the impact of these factors will be short-term,” he added.

The ministry projects GDP growth at 1.3% in 2019.

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