Russia’s GDP growth slowed down in the third quarter of this year, returning to the level of the first quarter, at 0.5 percent. GDP grew 0.7 percent in July, 0.4 percent in August, and 0.5 percent in September, according to the socio-economic survey for January-September 2005 released by Russia’s economy ministry.
Earlier this month, the economy ministry said GDP had grown 5.9 percent from January to September inclusive, against 7.4 percent in the same period of last year.

The economic slowdown was due to a decrease in the amount of exports and a continuing significant pressure from imports on domestic producers.

Wholesale and retail trade remain among the key factors behind GDP growth, along with repair of motor vehicles and domestic appliances. Those industries contribute the most to GDP growth; their share of GDP growth is expected to rise from 30.5 percent in 2004 to 33.6 percent this year.

An increase in construction output has also had a positive impact on Russia’s economic growth. The industry’s gross value added is set to increase 9.3 percent this year, against 10.2 percent last year.

Russia’s foreign trade surplus ran at $92.8 billion in January through September 2005, up from $61.9 billion in the corresponding period of last year. Trade with CIS countries accounted for 8.9 percent of the surplus.

Exports increased 38.3 percent in the first nine months of this year, to $178.4 billion. Exports into CIS countries rose 1 percent to $24 billion, and exports to other countries stood at $154.4 billion, an increase of 43.1 percent.