VEB: Russia’s GDP declines 4.1% on year in August

MOSCOW, Sep 29 (PRIME) -- Russia’s gross domestic product (GDP) fell by 4.1% on the year in August against a 4.4% decrease in July and was flat on the month with a seasonable adjustment, state-run development bank Vnesheconombank (VEB) said in a research note on Tuesday.

“August data generally confirm some stabilization of GDP dynamics. The GDP is not falling (on the month) for a second month in a row. The active phase of the downturn is likely to have been passed,” VEB said citing its Chief Economist Andrei Klepach.

The slowdown of the economic slump was majorly secured by a low base effect in industry and agriculture, while the GDP decreased 3.7% in January–August 2014.

In August, agriculture rose 1.1% on the month, mineral extraction rose 0.8%, production of electric power, gas and water rose 0.1% and net taxes also increased 0.1%, while the construction industry fell 0.4%, the retail trade decreased 0.1% and commercial services fell 0.4%.

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