Russia's GDP Decline Estimated At 2.1% In January-October - Economic Development Ministry

Mohammad Ali (@ChaudhryMAli88) Published December 01, 2022 | 02:50 AM

MOSCOW (UrduPoint News / Sputnik - 01st December, 2022) The decline in Russia's GDP slowed in October to 4.4% year-on-year after falling by 4.5% in September; the economy declined by 2.1% year-on-year in January-October, the Ministry of Economic Development said in a report.

The ministry also adjusted its estimates for the decline in GDP in September to 4.5% from the previous 5%, as well as for previous months. According to the document, in August, the GDP decline amounted to 3.5% (against 4% in earlier estimate), in July - 3.9% (4.3%), in June - 5.1 (5%), in May - 3.9% (4.5%), in April - 3.3% (2.7%). In March, the Russian economy grew by 1.5% (1.4%), in February - by 4% (4.2%), and in January - by 5.9% (5.7%).

The dynamics of Russia's GDP are close to the predicted trajectory, the contraction of the economy is still projected at 2.9% this year.

The ministry added that data on the dynamics of fixed assets investments in Russia in the third quarter of 2022 significantly exceeded expectations, showing a 3.1% year-on-year due to the gradual recovery of corporate lending activity.

The growth of investments in non-residential buildings and structures was 16.8% year-on-year, and the increase in investments in residential buildings was 12.2% year-on-year.

High investment activity was supported by the growth in investments from Russia's Federal budget by 45.2% year-on-year and by the increase in investments from regional budgets by 11.3% year-on-year. Extractive industries, transportation and storage, finance and insurance, and activities in the field of research and development contributed to the increase in total investments in Russia.

The ministry forecasts that investments in Russia in 2022 will decline by 2%. In the spring, the ministry expected this figure to amount to 20%.

Russian First Deputy Prime Minister Andrey Belousov in late summer explained the rise in capital investment by the fact that the Russian business was striving to complete all possible programs and projects "instead of abandoning investments."