In January 2014, Russia's gross domestic product excluding the seasonal and calendar factors decreased by 0.5% month-on-month, Russia's Ministry of Economic Development informed.
This GDP decline is attributable to a weaker performance in the manufacturing and mining sectors, retail trade, construction and development. At the same time, agriculture, production and distribution of electric power, gas and water and paid services to the population as well growing net taxes in the wake of an upward trend in oil exports and faster growth of gas exports made a positive contribution to the GDP.
In January 2014, Russia's 12-month GDP growth rate (against January 2013, as estimated by the Ministry of Economic Development, slowed down to 0.7% from 1% in December 2013.
Almost all the macroeconomic indicators deteriorated in January. There was a significant decline in investments, construction volume, annual industrial production. The weaker performance in the retail trade and agricultural sectors also contirbuted to the slower economic growth in January 2014 against the end of 2013. At the same time, the growing value of paid services to the population was a silver lining in January.
The investment activity plummeted in January, total investment shrinking by 7% year-on-year and 4.1% against December 2013 (net of seasonality). While the investment activity weakened, the amount of construction work decreased by 1.5% excluding the seasonal and calendar factors, the Ministry of Economic Development emphasized.
As estimated by the Ministry, industrial production excluding the seasonal and calendar factors dropped by 1.8% in January. While performance increased by 1.4% in the electric power, gas and water production and distribution sector, the total output dropped by 0.6% in the mining sector, by 2.8% in the manufacturing sector