Decline in Russian economy slows

© Evgenya Novozhenina
In July, Russian economy grew 0.1 percent, says the Ministry of Economic Development in its monthly review. However, yearly performance is far from good.

From January to July, Russian Gross Domestic Product contracted 3.6 percent compared to the same period last year. Meanwhile, GDP in July declined 4.6 percent versus the same month in 2014.

“With the exception of seasonality, the positive impact on the dynamics of GDP in July had mining, manufacturing, production and distribution of electricity, gas and water, as well as retail. However, the main negative factors remain the decline in construction and investments,” said a statement on Friday.

Industrial production for the first time showed a slight improvement of 0.1 percent compared to the previous month. The growth was recorded in mining (0.2 percent), in manufacturing (0.1 percent), in production and distribution of electricity, gas and water (0.2 percent).

In July, the country exported goods worth $28.2 billion (39 percent less than in July 2014), imported - $17 billion (down 41.9 percent).

The ministry reports higher inflation for July, with prices rising by 0.8 percent. The overall inflation this year has hit 9.3 percent.

On Friday, Moody’s international rating agency sharply downgraded its forecast for the Russian economy in 2016. The agency predicted next year Russia's GDP would decline by 0.5-1.5 percent. Previously, it had forecast zero growth.

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