( RBC ) - Russia's GDP grew 7.7 percent from January to August 2007, up 1.5 percent from the same period last year, the Russian Economy Ministry reported in its economic survey for January-August.
The Russian economy grew quickly in the summer, but growth slowed down in August compared with the previous three months. In August 2007, the economy grew 6.4 percent compared with August 2006. Seasonally and calendar-adjusted, monthly GDP growth remained high, at an average of 0.7 percent from January to August.
The impressive economic performance was fueled by growing investment demand, construction and consumer demand and imports, while manufacturing and exports declined.
The Economy Ministry has also announced its inflation forecast for Janury-September, placing it at between 7 and 7.1 percent. In August, consumer inflation stood at 0.1 percent, against 0.9-1 percent during the previous two months, thanks to lower fruit and vegetable prices. From January to August, inflation was 6.7 percent, down from 7.1 percent in the corresponding period of last year. From August 2006 to August 2007, inflation was 7.1 percent.
Core inflation grew 0.9 percent in July, rising to 1.1 percent in August. From January to August 2007, core inflation stood at 5 percent, close to 5.1 percent last year.
Despite lower inflation rates in August (thanks to seasonal factors), inflationary pressure remains high due to low competition and short supply of certain food products. An increase in world prices for major agricultural products amid rising personal incomes had also played a role.
Russians have become less inclined to save over the past two months, according to the Economy Ministry. The percentage of incomes placed into savings accounts and securities dropped to 6-6.3 percent from 8.2 percent in June due to a lack of profitable instruments. Simply stated, it became unprofitable to keep money in bank deposits.
As a result, prices for essential products have risen significantly over the past few months.
Russia's trade surplus from January to August was reported at 82.1 billion, a decrease of 17.9 percent compared to the same period last year. Exports stood at $216.9 billion, and imports reached $134.8 billion.
The Economy Ministry attributes the shrinking trade surplus to an increase of imports over exports. Russia's trade turnover was estimated at $351.7 billion from January to August, 18.8 percent more than last year. Trade with CIS countries increased by 26.3 percent, and trade with other countries was up 17.5 percent.