Russia Economy Grows 1.3% in Q1

Russia's gross domestic product grew by 1.3 percent year-on-year in the first quarter of 2018, following a 0.9 percent expansion reported in the previous period, a preliminary estimate showed.

It was the sixth straight quarter of growth after two years of contraction.

The Ministry of Economic Development had previously estimated GDP growth in the first quarter at 1.1 percent.

The Bank of Russia recently lowered its estimate of GDP annual growth for the first quarter to 1.3-1.5 percent, from 1.5-1.8 percent previously estimated, due to the weakening of business activity in March amid unusual cold weather. While the low temperatures contributed to the growth of thermal and electric power production, supporting industrial production as a whole; they also led to a reduction in the volume of contract works in construction, which affected fixed assets investment.

The central bank also expects GDP growth to slow to 1-1.4 percent in the second quarter of 2018.

Russia Economy Grows 1.3% in Q1

Joana Ferreira |
5/16/2018 3:16:18 PM