Source: Central Bank of the Russian Federation in English
According to the data for July–August 2019, production activity continued to go up in 2019 Q3. These are the findings published in the latest issue of ‘Economy: Facts, Assessments and Comments’. However, the growth of fixed capital investment remains low, and consumer demand is still moderate.
August recorded an expansion in output across various industries, including an increase in oil production driven by the resumed operation of the Druzhba pipeline. The latter also supported the petroleum-product and chemical sectors. The weakening of the ruble contributed to a higher competitiveness of several categories of Russian-made electrical equipment – the output in this segment was also up.
As in the previous months, the growth of fixed capital investment remained low. The output and imports of investment goods were close to the readings recorded last August. Given that household real incomes are stagnating, consumer demand remained moderate. This was evidenced by the persisting slowdown in annual retail turnover growth.
The Bank of Russia expects that GDP growth in Q3 will come in at 0.8–1.3%, as well as overall for the year.
26 September 2019