April saw slight economic recovery

After slowing down to 0.5% in the first quarter, GDP growth slightly recovered in April. Annual industrial production growth came in at its highest in the last two years with output increasing over a wide range of production sectors. Wage growth also continued. This is evidenced by the data released in the latest issue of ‘Economy: Facts, Assessments and Comments’.

Industrial production growth rate increased noticeably with positive developments evident in a wide range of product groups. In particular, a rise in output was registered in rubber and plastics, and in the woodworking and chemical industries. Production of light vehicles and meat and dairy products also grew.

April saw an increase in engineering imports, including on the back of ruble appreciation. However, the volume of construction works remained at the previous month’s level amid mixed dynamics of output of various groups of investment goods. This suggests that it is still too early to speak about a confident growth in investment activity.

The Bank of Russia expects that in the second quarter of 2019 GDP growth rate will be higher.