The Russian economy growth has slowed sharply in Q4 2017, but for the entire year the gross domestic product (GDP) expanded for the first time in three years, increasing by 1.5%, according to official state statistics. Russia’s Gross Domestic Product rose in the fourth quarter of 2017 with only 0.9% yoy, after a solid expansion of 2.2% in the July-September period (upward revision from a previous appreciation of 1.8%).
The weaker performance of the economy at the end of the year is due to a decrease in industrial, mining and agricultural production. The industrial sector shrank by 2.8% (after an increase of 1.3% in the third quarter), the mining sector was down by 0.9% (after growth by 1.6%), while production of electricity and natural gas shrank by 4.1% (after an increase of 1.3% in the third quarter).
At the same time, the construction sector rose by 1.7%, wholesale and retail trade grew for the second consecutive quarter by 3.6%, while the agricultural production declined by 0.5%.
Despite very weak growth in the three months to the end of December, the Russian statistics confirmed that the gross domestic product of the country expanded 1.5% last year, after an year earlier contracted by 0.2%.
This represents the first annual expansion of Russia’s economy since 2014.