The Bank of Russia expects population income growth. Demand in the economy will grow thanks to budget investments, and low inflation will support the growth of incomes of the population, according to the Central Bank. “In the coming quarters, budget spending and easing monetary conditions will contribute to the overall growth of demand in the economy, while a slowdown in inflation will support the growth of real incomes and consumer demand”, analysts say. The Central Bank Research and Forecasting Department has prepared another bulletin entitled “What are the Trends?”
Economic growth in Q3 accelerated YoY. However, while its pace still remains low. This decrease in exports due to the deceleration of the global economy, adverse demographic trends, as well as structural problems in the Russian economy.
According to the results of this year, GDP growth will be in the range of 0.8-1% according to forecast of the Central Bank. At the same time, the growth of output in basic industries on average for Q3 in annual terms accelerated to 2% from 0.9% in Q2. Slowdown is noticeable only in mining and retail.
Agriculture grew the most in September by 5.6%, which was facilitated by a good harvest. Wholesale trade grew by 4.6% amid growth in manufacturing output. In construction, the volume of work increased to 0.8% in September from 0.3 percent in August.