Russian economy avoided a technical recession

Despite the negative trends Russian economy has avoided a technical recession

03.Aug.14 1:58 PM
By Ube Salorainen
Photo mfd.ru

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Russian economy avoided a technical recession

According to the monitoring of socio-economic development of Russia during the first half of the year 2014, which was prepared by the Ministry of economic development it can be said that Russian economy has avoided a technical recession.

The Ministry of economic development conducted that despite the negative trend of economic markers for June, nevertheless Russian economy has managed to avoid recession. If GDP in the first quarter declined by 0.5% compared to the same period last year, excluding seasonality, the second quarter GDP showed an increase by 0.1 %. For June, 2014 GDP declined by 0.2 % regarding May 2014, excluding seasonality and calendardate. As it was explained in the Ministry, in June 2014 the structure of GDP growth has changed - if earlier figure was increasing due to the manufacturing industry (because of import substitution as a result of weakening of the ruble, the reduction of import from Ukraine and a temporary increase in domestic demand), in June this industry has demonstrated a significant decline. In annual terms the economy shrank declined in June to 0.6 % (1.3% in May).

However, owing to positive April and June, the annual growth of GDP has increased and amounted to 1.1 % in the second quarter (in the first – 0.9%).

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