Russian Economy Grows for First Time in 3 Years

Russia's gross domestic product expanded by 1.5 percent year-on-year in 2017, compared with a 0.2 percent contraction in 2016, a preliminary estimate showed. It was the first year of growth since 2014.

The secondary sector contributed positively to growth, mainly due to a rebound in mining (1.4 percent vs -2.8 percent 2016) and electricity, gas and steam, air conditioning (0.3 percent vs -0.4 percent). Also, output continued to grow for both manufacturing (0.4 percent vs 2.3 percent) and water supply, water disposal, organization of waste collection and disposal, pollution control activities (0.2 percent vs 1 percent). By contrast, construction output contracted for the fifth consecutive year (-0.2 percent vs -0.8 percent)

Within services, output rose for: transportation and storage (3.7 percent vs -4.5 percent in 2016); wholesale and retail trade (3.1 percent vs -5.6 percent); hotels and restaurants (2.2 percent vs -0.4 percent); financial and insurance activities (2.5 percent vs 1.4 percent); administrative and related additional services (2 percent vs -1.2 percent); real estate (2.2 percent vs 2.9 percent); and information and communication activities (3.6 percent vs 7.2 percent).

Agriculture rose by 1.2 percent after a 3.2 percent advance in the previous year.

The country's central bank was expecting the GDP growth at 1.7-2.2 percent, while the economy ministry had forecast an expansion of 1.4-1.8 percent.

Russian Economy Grows for First Time in 3 Years

Federal State Statistics Service | Joana Ferreira |
2/1/2018 2:22:29 PM