The Russian GDP will increase to 0.7 per cent in the first and second quarters of 2016

On December 9, 2015 the Minister of Economic Development of the Russian Federation Alexey Ulyukaev during the “government hour” at the Federation Council presented the forecast for the social and economic development of Russia in 2016 and for the target period of 2017 and 2018.
According to Alexey Ulyukaev, the lowest point of recession in the Russian economy was passed in the middle of 2015 at the end of the second and the beginning of the third quarters. Starting from July the industrial recession has stopped to deepen. In September-October the GDP seasonally adjusted started to grow: 0.2 per cent in September, 0.1 per cent in October and about 0.1 per cent in November. The development of agricultural and mining industry and improvement in the sphere of investments positively affected the situation.
It is expected that the growth rate of the Russian economy will reach 0.7 per cent at the turn of the first and second quarters of 2016.
The situation with the real income of the population is expected to improve due to the deceleration of inflation. According to the basic variant of the forecast, in 2016 consumer prices growth will slow down to 6.4 per cent, market demand will increase by 0.2 per cent to the level of 2015. Production inventory is expected to grow because of the reduction of loan rates. The contribution of these two factors – market demand and inventory restoration – will give 1 per cent of GDP in 2016. “We expect the total growth of manufacturing output during 4 years to be 4% in the context of outrunning growth of 5.5% in processing industry,” – said Alexey Ulyukaev.
Press-release at the official web-site of the Ministry of Economic Development of the Russian Federation