VEB says Russia’s GDP falls 0.5% in 2016, 0.4% in December

MOSCOW, Feb 3 (PRIME) -- Russia’s gross domestic product (GDP) contracted by 0.4% on the month in December 2016 excluding seasonal factors after rising 0.5% on the month in November, and in the whole year the factor decreased 0.5%, state development bank Vnesheconombank (VEB) said in a statement late on Thursday.

In October–December 2016, the GDP fell 0.1% on the year, VEB said.

The seasonally adjusted dynamics of GDP was hurt by the construction sector, which went down 4.7%, the retail sector with a 2.4% fall, the production of power, water and gas with a 1.5% contraction, and the agriculture output with a 5.6% decrease.

But the manufacturing sector rose 0.8%, the mineral extraction industry went up 0.6%, and the transport sector grew 0.5%

“The Russian economy has been showing positive or neutral GDP dynamics excluding the seasonal effect for the past three quarters. According to a traditional analysis of the environment, the end of the recession and a switch to restoration is there. Agriculture, industry and growth of exports became major drivers for that. But in general, economic growth has not became consistent yet,” VEB cited its Chief Economist Andrei Klepach as saying.

The Economic Development Ministry said on Monday that Russia’s GDP fell 0.6% in 2016, and in December it contracted 0.5% on the month excluding seasonality. But later, the Federal State Statistics Service said that the country’s economy contracted only 0.2% in the year.

End