Russia’s Central Bank: GDP declines in 2016


Russia’s GDP reduction amounted to 0.2% in 2016, but dynamics turned positive in the fourth quarter of 2016, the Central Bank reported.

«In 2016, GDP reduction amounted to 0.2%. In the fourth quarter, GDP turned positive. A recovery of cumulative demand in the first half of 2017 will facilitate further GDP growth,» TASS cited the Central Bank as saying.

«The quarterly GDP growth rate is estimated to turn positive, demonstrating a revival of economic activity, which will persist in early 2017 as well,» the report said.

«In the fourth quarter of 2016, the economic recovery started to get sustainable, though the dynamics of the main indicators remained mixed. On the one hand, industrial production increased, backed by surging external demand and expansion of import substitution. The investment activity gradually rebounded,» the report added.

On the other hand, the consumer demand shrank following a slight growth in the third quarter of 2016, the regulator said.