Rosstat recorded the first two years the quarterly GDP growth

Photo: Vladimir Smirnov / TASS

According to official statistics, in October—December 2016, Russia’s GDP grew at an annual rate of 0.3%. It was the first instance of quarterly growth in two years

By the end of 2016, gross domestic product (GDP) of Russia in the current prices amounted to approximately 86,04 trillion rubles, follows from the message of Rosstat. Compared to 2015 year GDP in constant prices decreased by 0.2%. Thus, the decline in Russian GDP has slowed significantly in 2015 under a final assessment of Rosstat, amounted to 3%.

In the fourth quarter of 2016, the country’s GDP, according to estimates of the statistical office, increased by 0.3% compared with the period a year earlier. This is the first quarterly GDP growth in two years. The last time the quarterly increase in GDP was recorded by Rosstat in the fourth quarter of 2014.

In a number of sectors of the Russian economy, GDP growth rates were considerably higher. In the sphere of production and distribution of electricity, gas and water supply quarterly growth amounted to 5.5% and the annual rise of 2.6%. The plus for the year came agriculture (plus 3.6 percent), manufacturing (1.1%), financial activities (+0,8%), etc.

In January 2017, the head of the Ministry Maxim Oreshkin at the meeting with Russian President Vladimir Putin said that in his Department expect an increase in GDP of about 2%.

“In 2016, the increase has been concentrated only in some sectors, such as agriculture, chemical industry, etc. In 2017, we expect that the growth will be more broad, will affect including the consumer sector, the expected recovery of monetary incomes of the population will develop a positive trend,” said Oreshkin, calling the situation in the economy “is pretty positive.”

According to the forecast of IMF experts, in 2017, Russia’s GDP will grow by 1.1% and in 2018 — by 1.2%.

First Deputy Prime Minister Igor Shuvalov said earlier that the government is preparing measures to accelerate the growth of the country’s GDP in the future to move from a two per cent growth to a more “acceptable numbers”.

“We believe that 2% for Russia — the growth is quite low,” — said in early 2017 Shuvalov.

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