Investment growth in Russia in the second quarter reached a five-year peak

MOSCOW, August 25. /TASS/. The annual growth rate of investment in fixed capital in Russia in the second quarter of 2017 was 6.3% and was the highest since 2012 due to the strengthening of the ruble, as well as such infrastructure projects as construction of gas pipeline “Power of Siberia” and the Crimean bridge. This was reported in the information-analytical reviews of Bank of Russia “the Economy” for August.

It explains that investment demand increased more than expected – the company actively purchased machinery and equipment, including foreign production, on the background of what happened in the beginning of the year the strengthening of the ruble.

“In addition, in the second quarter increased significantly the volume of construction works, support what is assumed to be provided by the implementation of major infrastructure projects such as the construction of a bridge across the Kerch Strait and the gas pipeline “Power of Siberia”, – said in comments. – As a result, in the second quarter, the annual growth rate of investment in fixed capital accelerated to an estimated 6.3 per cent from 2.3 per cent in the previous quarter, reaching thus the maximum values, since the second quarter of 2012.”

The recovery of consumer and investment supported GDP growth, noted in the TSB. According to preliminary estimates from Rosstat, in the second quarter annual GDP growth was 2.5% and was higher than estimated by the Central Bank. In addition, the regulator raised its forecast for GDP growth in the third quarter to 1.7 and 2.2% from 1.5% to 1.8%.

The Central Bank expects the recovery in economic activity will continue in the third and fourth quarters, although it will happen at a slower pace compared with the second quarter.

In June the Bank of Russia has revised the forecast of growth of GDP by the end of 2017, raising it to 1.3-1.8% with 1-1,5%.