The fall of the Russian Federation economy was resumed in July
On Friday the Ministry of Economic Development stated in its monthly monitoring that Russia’s GDP had started to fall in July again. By the previous month it was 0.1 per cent, excluding the seasonal factor. And by the same period last year GDP fell by 0.7 percent.
“Preliminary results of the socio-economic development of Russia show a slight deceleration in the economy in July this year. According to the Ministry of Economic Development of the Russian Federation, a seasonally adjusted indicator of GDP which had been stabilized in May- June, declined by 0.1 percent in July. It is largely due to the negative dynamics of the manufacturing sector and wholesale trade “, – reads the monitoring data.
“After three months of the consecutive deceleration of the economic recession, the annual rate of GDP decline accelerated in July again. The last month GDP was lower than last year indicator by 0.7 percent against 0.6 percent in May and 0.5 percent in June. “
Earlier this week, Alexei Ulyukayev, Economic Development Minister, said that there had been no growth in July, taking into account the removed seasonality. By July last year, the decline was equal to 0.6 per cent.
“The negative dynamics of GDP is being maintained, primarily due to the continued reduction in the volume of construction and the continuing demand restrictions.”
As the Ministry of Economic Development believes, the Russian economy has decreased by 0.9 percent for the period of 7 months when compared to the same period of 2015.
In April the forecast of the department was based on the fact that the reduction of the Russian economy would be slight in 2016 – 0.2 per cent, and in the years of 2017-2019 we would experience the rise by 0.8-2.2 percent.