Photo: Vladimir Song / RIA Novosti
Russia’s GDP in the first quarter of 2019 rose 0.5 percent in annual terms, said in a statement on the website of Rosstat.
This is 0.3 percentage points below the forecast, which earlier gave the economic development Ministry. It is also the lowest result since the fourth quarter of 2017, when the economy grew by 0.3 percent.
In the fourth quarter of last year GDP grew by 2.7 percent. All the year 2018, the growth rate never fell below 1.9 percent.
The report stresses that these are preliminary Department. They have already responded to the Ministry of economic development. They said that the slowdown is due to the weakness of domestic demand to the increase in the tax burden (from January 2019 VAT increased from 18 percent to 20 percent), according to video News Service.
Another reason is “the lowest growth rate in corporate loans and a slowdown in mortgage lending”. The Ministry called the decline expected. “The General weakness of demand is confirmed by the observed trend of a rapid deceleration of inflation”, — stated in the message of Ministry of economic development.
According to the forecast of Ministry of economic development, Russia’s GDP in 2019 will grow by 1.3 per cent (after rising 2.3 percent in 2018), according to the Central Bank by 1.2-1.7 percent.
Video, photo All from Russia.