World Economy

Some Benefit for Russia

Some Benefit for RussiaSome Benefit for Russia

The period of restoration of oil prices in the first half of this year has had some beneficial effect on the Russian economy. The production sector has demonstrated positive growth rates, and the GDP’s rate of decline has slowed down. However, as long as the oil price is quite predictably distancing from the level of $50 per barrel, the fragile signs of stabilization are also disappearing. In June, the Russian production sector demonstrated growth of 1.7% YOY, exceeding the expectations of many analysts, Seeking Alpha reported. Besides the production sector, only agriculture is growing in Russia, which is partially explained by the fall in the volume a year earlier. In June, the construction volume fell by 9.7% YOY relative to the decline of 8.7% YOY a year earlier. In 2016, the retail turnover is declining each month at an average rate of 6% YOY, with no apparent trend towards improvement. In July the Primary Consumer Confidence Index in Russia, according to Reuters, reached its multi-year low of 35.5%, indicating the disappearing optimism of Russian consumers.