The Russian economy is the poor start of the year and falls again
The economy of Russia has again started to fall. Despite the intense mining and the growth of world oil prices.
In February Russia’s GDP dropped another 0.1%. The decrease was recorded even after accounting for calendar factors (last year in February there were more working days). This is stated in the operational rating “Внешэкономбанкf” writes finanz.ru. In the end, the first two months showed the economic decline of 0.4%, almost entirely reversing the increase in the second half of 2016.
The decline was due to a reduction in manufacturing production (-1,7%), construction (down 0.6%), trade (-0,3%), transportation (-0.3 percent), and a decrease in net taxes ( a-0.7%). A positive contribution to GDP dynamics was introduced by mining (1.6 percent), agriculture (2.0 percent), electricity and water supply (3.4 percent), specified in “Vnesheconombank”.
Overall investment activity in the Russian economy fell 0.8% in February and 1.1% in January.
The key problem, which complain about the heads of industrial enterprises, – absence in the economy of effective demand, the Director of the Center for business research Visshey school of Economics (Russia) Georgy Ostapkovich.
While signs of growth only in corporations, exporting resources, they support the devaluation of the ruble.
“Other companies is declining, which increases the rigidity of the tax administration, the lack of structural reforms and falling incomes”, – says the analyst of Raiffeisenbank Denis Poryvai.
Meanwhile, Bloomberg Russia’s rapid economic growth thanks to higher oil prices.