Russian Economy Contracts 0.1% QoQ in Q1

In Q1 of 2013, seasonally adjusted Russian GDP fell 0.1 percent quarter-on-quarter, down from an expansion of 0.6 percent in Q4 of 2012. This contraction reflects a sharp drop in investment and a deterioration in external trade.

In the first three months of 2013, gross fixed capital formation contracted 0.9 percent qoq, 4.5 percentage points down from the previous quarter. Exports grew 1.1 percent, a slower pace than imports which rose 2.7 percent. Private consumption was up 2.4 percent over the previous quarter and was the biggest upward pressure.

Mining and quarrying (-3.3 percent), production and distribution of electricity, gas and water (-0.8 percent) and agriculture (-0.7 percent) were the economic sectors registering the steepest falls. Financial services (+5.8 percent) and manufacturing (+4.3 percent) recorded the sharpest growth rates.

The 2013's economic growth forecast was slashed to 2.4 percent from 3.6 percent, well below the government's target of 5.0 percent.

Russian Economy Contracts 0.1% QoQ in Q1

GKS | Nuno Fontes |
7/1/2013 4:38:49 PM