VEB says Russia’s seasonally-adjusted GDP falls 0.3% in November

MOSCOW, Dec 26 (PRIME) -- Russia’s gross domestic product (GDP) fell 0.3% on the month excluding seasonal and calendar factors after a 0.2% contraction in October, Vnesheconombank (VEB) said in its monthly monitoring report on Tuesday.

“The increase of GDP in physical terms has almost slowed down to zero and amounted to 0.1% (in November) against 1.1% in October of this year. The decrease happened largely dur to the high base of November of last year,” VEB said.

Excluding the seasonal factor, the mineral extraction sector decreased 0.4% in November, while processing companies reduced their output by 1.7%, and production and distribution of power, water and gas contracted 1.5%. Wholesale and retail trade fell by 0.8%, while the transport sector contracted by 3% and paid services decreased 0.3%.

But output of agriculture rose 3.2%, output of the construction sector gained 2.3%, and net taxes increased 0.2%.

The GDP growth estimate for January–November is now at 1.4%, down from 1.5–1.7% forecasted previously.

VEB Deputy CEO Andrei Klepach said that the economy has been contracting over the past three months.

“Over time, added value of the industrial sector decreased by 4% and of processing industries by 5%. But we think that it is too early to speak about a consistent negative trend that follows a local peak in the second quarter. In particular, it is supported by continuously positive figures of the PMI index. A combination of favorable factors that supported the growth of the industry and economy in the second quarter was temporary, just as we expected,” Klepach said as cited by VEB.

End