Rosstat estimated the decline in GDP in the first quarter at 0.7%

Rosstat has improved its estimate of the decline in gross domestic product (GDP) in the first quarter. The drop was previously estimated at 1%, and now it is 0.7%. The volume of GDP for this period amounted to 26.771 trillion rubles.

“The volume of Russia’s GDP for the first quarter of 2021 amounted to 26771.0 billion rubles in current prices. The index of its physical volume relative to the first quarter of 2020 amounted to 99.3%, – the Rosstat website says. – The main factors of decline … were restrictive measures to spread coronavirus infection and low demand for energy resources in the world. Against this background, a drop was observed in the mining industry (-7.4%), according to Rosstat.

“The continued demand for banking services led to an increase in value added in the field of finance and insurance (+ 6.7%),” the statement said.

Growth was also demonstrated by:

  • processing industries (plus 0.6%);
  • provision of electricity, gas and steam (plus 9.0%);
  • water supply, sewerage, organization of waste collection and disposal, activities to eliminate pollution (plus 13.0%);
  • construction (plus 0.1%);
  • wholesale and retail trade (plus 0.7%);
  • information and communication (plus 4.5%).

Earlier, Rosstat clarified the estimate of the economic decline in 2020, improving it by 0.1 percentage points, to 3%. The intra-quarter dynamics was also revised: the drop in GDP in the fourth quarter was estimated at 1.8%.

For more details, see Kommersant’s article “Past GDP is not a friend to the future.”

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