Russian quarterly growth points to ongoing recovery

Russia's GDP grew 0.5 percent in the first quarter of 2017, the state statistics agency said

Moscow

Russia's GDP grew 0.5 percent in the first quarter of 2017, the state statistics agency said Wednesday, as the country's economy slowly recovers from a crippling crisis.

The growth reported by the Rosstat agency is slightly superior to the government's prediction of 0.4 percent growth over the same period.

The economy expanded for the first time in two years in the fourth quarter of 2016, the Rosstat agency said in March, recording 0.3 percent growth in gross domestic product year-on-year.

Russia's GDP last experienced growth in the fourth quarter of 2014, when it expanded by 0.2 percent.

"The picture here is of a slow but steady recovery," Neil Shearing, chief emerging markets economist at Capital Economics, said in a note to clients.

"Our view is that growth will continue to edge up over the coming months and quarters as lower inflation and looser monetary policy strengthen demand."

Rosstat said in March that Russia's GDP had contracted 0.2 percent overall last year, after having shrank 2.8 percent in 2015.

Russia's economy has shown signs of stabilisation over the last few months after a recession that has diminished people's purchasing power and pushed large segments of the population into poverty.

The government expects growth to continue and reach 2 percent this year.