Russian economic growth accelerated

Rosstat’s preliminary estimate puts third-quarter GDP growth at 1.7 % y-o-y, well above the 0.7 % rate for the first six months of this year. The acceleration in GDP growth apparently reflects higher export volumes and inventories, as there have been few signs of any revival in domestic demand. Retail sales growth in the third quarter slowed to just 0.8 % y-o-y, a decline from the 1.8 % pace set in the first half of this year. Construction has remained practically flat for the entire year. Our latest BOFIT Forecast for Russia expects GDP growth of around 1 % this year.