Russian economy slowing down
Despite high oil prices, the Russian economic growth now shows signs of stagnation. Industrial output growth is shrinking together with investments, housing construction, and peoples‘ incomes. Meanwhile, both production costs and prices increase.
Russian economy has grown steadily since the crisis of 1998. In 2007 economic growth amounted to more than eight percent. Growth still remains high however. In June, it amounted to 6,5 percent. What concerns ecnonomists is that the growth dropped significantly from May when it amounted to 7,7 percent. In June, industrial growth was the lowest in 4,5 years (0,9%). In addition comes the lowest investment level in three years, less trade and less housing construction, newspaper Vedomosti reports. -The economy is showing signs of slower growth, Russian Deputy Minister of Economic Development, Andrey Klepach, to Reuters.
