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The GDP of the Russian Federation increased by 0,7% in Q1-Q2 compared to the same period a year before as the Ministry of Economic Development reported. In June, the GDP increase was also 0,7% in comparison with 0,1% growth in May. Russian economy finished the Q2 with the same weak growth increased by 0,8% year-by-year after raising by 0,5% a quarter before. The main negative factor which caused such a weak economic growth in Q1-Q2 according to Ministry’s assessments was low cumulative demand. On 15 July abrupt decline of inflation to 4,5% from the highest value of 5,3% was fixed. In the Q1 the industry added 0,08% to GDP while trade, construction and transport didn’t contribute anything to GDP. In June, the industry production in Russia grew up compared to the same month in 2018 by 3,3%. It also speeded up the pace compared to the 0,9% growth in May. The Ministry of Economic Development expects that GDP will increase by 1,3% this year.
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