Russia GDP Growth Beats Expectations

The Russian economy advanced 0.7 percent year-on-year in the third quarter of 2014, down from a 0.8 percent expansion reported from April to June, according to the preliminary figures from the Federal Statistics Office. The number came well above market expectations and the central bank estimate of 0.2 percent.

The economy slowed for the third consecutive quarter, as sanctions imposed by the United States and European Union hit foreign investment and exports. A year earlier, the GDP expanded 1.3 percent.

Since the beginning of the year, the ruble depreciated more than 40 percent against the USD pushing inflation rate to a three-year high of 8.3 percent in October. Also, exports reached a 7-month low in September as falling oil prices cut revenues.

Meanwhile, the central bank raised the benchmark interest rate for the fourth time this year to 9.5 percent on October 31st, putting further pressure on the economy

Russia GDP Growth Beats Expectations

Joana Taborda |
11/13/2014 7:55:26 PM