FDI growth in Russia estimated at 3.4%-4.5% in Q2 - Central Bank
MOSCOW. July 2 (Interfax) - Russia's Central Bank estimates that fixed capital investments (FDI) into Russia grew by 3.4%-4.5% in Q2 2017 in annual terms, up from growth of 2.3% in Q1, the regulator said in commentary on the economic situation.
The Central Bank estimate was lower than the Economic Development Ministry which estimated FDI growth in Q2 at 5%-6%. Russia's Federal State Statistics Service (Rosstat) has yet to publish its official estimate on investments in Q2.
The Central Bank expects investments to continue to grow by 2.5%-4% in Q3.
"Annual FDI growth rates in Q2 2017 according to the Bank of Russia accelerated to 3.5%-4.5%, after growing 2.3% the previous quarter. In Q3 investments are expected to continue to grow at quite a high level of 2.5%-4%," the bank said in its survey.
"In June 2017 investment activity continued to grow. The volume of construction work, not taking into account seasonality and the calendar factor, steadily increased in relation to the previous month. Annual growth rates in June accelerated to 5.3% from 3.8% a month earlier, their highest level since July 2013. Under conditions of a construction recovery, production of construction materials continued," the report said.
"The production of engineering products also continued to increase, which together with growing imports of equipment, was able to meet demand from companies for goods for investment purposes. At the same time, a trend toward uniform growth in the production of various groups of engineering products has not been achieved so far. The main contribution to rising production came from the transportation sector, just as before. Production of office equipment and other types of mechanical equipment increased, while production of electrical equipment such as conductors and accumulators declined," the Bank of Russia said in its commentary.