Russia’s GDP grew by 1.9% yoy in Q2 2018

September 10, 2018 11:39 pm0 commentsViews: 17

Russia GDPThe Russia’s GDP grew by 1.9% yoy in Q2 2018, compared with a preliminary growth estimate of 1.8% and an expansion of 1.3% in the first three months of the year. The stronger growth rate is mainly due to the profits made by hotels, the transport sector and restaurants due to the positive effect of the World Cup.

In addition, the production and mining increased at a faster pace.

The services sector has contributed significantly to growth as there was a larger increase in the accommodation and catering sectors (6.9% vs 3.4% in the first quarter of the year), transport and storage (3.9% versus 0.9%) and financial and insurance activities (8.6% vs 5.9%).

At the same time, however, the activity in the real estate sector fell by 1.5% in the period April to June, while in the first quarter of this year growth was 3.9%. The construction output grew by 0.8%, compared with 5.1% in the previous quarter.

Within industrial activity, output increased in industry (2.8% vs 1.9% in the first quarter of the year) and mining and quarrying (2.6% vs 0.7%).

In addition, agriculture, forestry and fishing reported a 0.3% growth, down from a 0.1% decline in the first three months of this year.

In the first half of 2018, the Russian economy expanded by 1.7%, which is slightly above the registered 1.6% in the same period last year.

The forecast of the Russian Central Bank is that Russia’s GDP growth will fluctuate between 1.5% and 2% in the third and fourth quarters of the year.

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