VEB: Russia’s GDP contracts 4.4% on year, flat on month in July

MOSCOW, Aug 25 (PRIME) -- Russia’s gross domestic product (GDP) contracted 4.4% on the year in July and did not change in month-on-month terms, seasonally adjusted, state bank Vnesheconombank (VEB) said in a statement Tuesday.

“The household consumption decrease has faded away. Growth of the bulk raw materials exporting industries has resumed,” Chief Economist Andrei Klepach said, as cited in the statement.

“This boosted transportation dynamics. In July, federal budget spending accelerated significantly, which also had a stimulating effect.”

The majority of positive factors seen in July were temporary; consumer confidence is still low, while investment and construction contraction is gaining pace.

In January–June, seasonally adjusted GDP fell 4.6%, the bank said.

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