Russian growth slows 1.2 percent in blow for Putin
AFPMOSCOW -- Russia's economic growth was shown Friday to have slowed sharply in the second quarter despite efforts by President Vladimir Putin to reverse the trend before he hosts next month's G-20 summit.
August 10, 2013, 12:08 am TWN
The first official growth reading from the Federal State Statistics Service dealt a heavy blow to the government by revealing that the economy had expanded at a rate of just 1.2 percent.
The reading is below both the first quarter's already-disappointing growth rate of 1.6 percent and the economic ministry's own second-quarter forecast of 1.9 percent.
The Federal State Statistics Service did not explain what prompted the slowdown in its brief two-sentence statement.
But analysts noted that the figure was part of a broader negative trend that began in 2011 after nearly a decade of rapid expansion during Putin's first two terms as president in 2000-2008.
“This is the slowest pace of expansion since the fourth quarter of 2009 and the sixth consecutive quarterly decline in (the) GDP” growth rate, the Moscow-based Renaissance Capital investment bank said in a note to clients.
The poor economic readings may throw a wrench into Putin's plans and underscore Russia's current standing as one of world's worst-performing emerging economies.