UPDATE: Russia’s Jul–Sep GDP close to zero excluding seasonality–cbank

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MOSCOW, Sep 27 (PRIME) -- The growth of Russia’s gross domestic product (GDP) excluding seasonality was close to zero in July–September, while in annual terms GDP contracted by 0.4–0.7%, the central bank said in a research note Tuesday.

“The GDP growth is estimated at close to zero in the third quarter compared with the previous quarter and excluding seasonality,” the research note read.

“Dynamics of macroeconomic factors in August corresponded to expectations of the Bank of Russia and did not lead to changes in forecasts of annual contraction of GDP in the third quarter at 0.4–0.7% and in the whole 2016 at 0.3–0.7%,” the central bank said.

The processes of Russia’s economy restoration remained inconsistent in August. On the one hand, industrial output has started to grow and increase of agricultural output has sped up. On the other hand, weak consumer and investment demand and pessimistic expectations of companies restrained production activity, the central bank said.

Dynamics of many factors of investment activity improved in the month. The annual contraction of fixed capital investments slowed down to 2.5–3.5% in July–September from 4.3% in January–June, the central bank said.

“The contraction of construction volumes slowed down significantly, and a rise in imports of cars and equipment continued. Under the Bank of Russia’s estimates, the annual dynamics of fixed capital investments was close to zero in August. At the same time, the conservative investment policy of companies, uncertainty regarding future dynamics of demand, moderately tough conditions of corporate lending continue to restrict investment activity,” the regulator said.

The Economic Development Ministry forecasts Russia’s GDP to fall 0.5–0.6% in 2016.

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