Russia's July GDP growth picks up


(Photo: VCG)

MOSCOW, Aug. 19 (Xinhua) -- The Russian Economic Development Ministry estimated Monday that the country's gross domestic product (GDP) growth accelerated sharply in July to 1.7 percent from 0.8 percent in June mainly on industrial growth.

Year-on-year GDP growth in the first seven months of the year remained unchanged at 0.9 percent, the ministry said in its monthly business activity report.

"Economic statistics for July indicate a recovery in economic growth after weak dynamics in the first half of the year," it said.

According to the ministry's estimates, a significant positive contribution to the GDP growth rate of 0.5 percentage point in July was made by industrial production which showed a steady growth for two months in a row.

Industrial output, according to the official Rosstat statistics service, rose by 2.8 percent year-on-year in July after 3.3 percent in June, while it was up 2.6 percent in the first seven months of the year from the same period a year ago.

The ministry said its estimate was based on the preliminary estimate of GDP dynamics in the second quarter of 2019 provided by the Russian official Rosstat statistics service and adjustment of data for certain types of economic activity.

In June, Russian Economic Development Minister Maxim Oreshkin said that the increase in the country's GDP may exceed the earlier expected 1.3 percent this year, but he did not provide an explanation of this forecast.