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Russia’s GDP falls 0.9% in January-June

Staff Writer | July 29, 2016
Russia’s gross domestic product fell 0.9% on the year in January–June, but remained almost flat on the year in June excluding seasonal factors, the Economic Development Ministry said.
Economy in Russia   The Economic Development Ministry:
“The Economic Development Ministry’s estimates showed a 0.9% contraction of GDP in the first half of the year compared with a corresponding period of the previous year,” the ministry said.

But the GDP contraction excluding seasonality almost stopped in June after a 0.2% contraction in April and a 0.1% contraction in May.

The major positive influence on GDP dynamics in the month were provided by the industrial production, transport and agriculture sectors, while the negative impact came from the construction and retail trade sectors, the ministry said.

In April–June, the GDP fall slowed down to 0.6% in annual terms after a 1.2% decrease in January–March, the ministry said.

On July 19, Economic Development Minister Alexei Ulyukayev sad the Russian economy will start expanding very soon.

The ministry’s baseline forecast envisages Russia’s GDP falling 0.2% in 2016 if the oil price averages at $40 per barrel, but Ulyukayev previously said that if the current prices are maintained throughout the year, GDP may even slightly grow in 2016.