Economic ministry expects Russian GDP growth to quicken to 1.9% in Q3, to 2.2% in Q4

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(Interfax – MOSCOW, August 27, 2013) The growth of Russia’s gross domestic product could quicken to 1.9% in the third and 2.2% in the fourth quarters, Deputy Economic Development Minister Andrei Klepach told the press.

“We have revised the GDP growth forecast for the third quarter to 1.9%, for the fourth to 2.2%, Klepach said, noting that second-half growth generally could be around 2%.

GDP grew 1.6% in Q1 and 1.2% in Q2.

The economic stagnation of recent times will end in 2013, to be replaced “with weak growth, but it will not be stagnation,” Klepach said.

“I would not say that this is stagnation. This is an exceedingly low growth rate, which makes it substantially impossible to meet the benchmarks contained in presidential decrees,” he said.

Stagnation may continue in some economic sectors into 2014, particularly in the auto industry, “but most likely, by the end of this year and especially in 2014, there will be some recovery although, unfortunately, it will be at a low pace,” he said.

The auto industry might even suffer a contraction in 2014, particularly if no scheme is organized for adapting to the new rules concerning taxation of scrappage, he said.

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