Gross domestic product (GDP) growth in Russia slowed to 0.5% in the first quarter of this year compared to the same period last year, the Russian federal statistical service stated on Friday (Rosstat), quoting preliminary data .
"The slowdown in GDP growth was to be expected and resulted from weak domestic demand coupled with an increase in taxes," said the Russian Ministry of Economic Development in a response to the Rosstat statement.
The ministry added that GDP growth in the first quarter was below the department's latest estimate of 0.8%.
The Russian central bank estimates that GDP growth this year will be between 1.2 and 1.7%, compared to 2.3% in 2018.
It also expects the increase in tax revenues to be used to increase government spending, including investments, so that the pace of economic growth will be higher in the coming years. F
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