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Slack dynamics take their toll of Russian 2013 growth

In the first two quarters, GDP added 0.2% and 0.1% less seasonal factors respectively

© ITAR-TASS/Vladimir Sayapin

MOSCOW, February 07. /ITAR-TASS/. Economic growth slowed sharply last year, say preliminary figures from the Federal State Statistics Service. Gross domestic product fell to 1.3% against 3.4% in 2012. Deceleration reflected slack dynamics in industrial production, wholesale and retail activity, construction, real estate, and the impact of food taxes.

In the first two quarters, GDP added 0.2% and 0.1% less seasonal factors respectively, while in the third quarter it declined 0.2% to resume quarter-on-quarter growth in the fourth. Adjusted for seasonal fluctuations, GDP rose 0.3% in the last quarter of 2013.

Growth ceased in December after a two-month consecutive month-on-month increase of 0.3% in October and 0.1% in November when manufacturing, mineral resources and retail made a positive contribution, reports the Ministry of Economic Development.

Generation and distribution of electricity, gas and water, construction, paid services, agriculture and net taxes on food and imports dragged on it, the figures show.

Reflecting data on food and import taxes, the ministry adjusted its estimates of year-on-year GDP growth downwards in October from 1.7% to 1.5%, upwards in November from 1.0% to 1.8% and returning to a forecast 1.0% year-on-year in December.

Slackening reflected deeper decline in construction, generation and distribution of electricity, gas and water, and a slowing in agriculture, the retail sector and paid services.

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