GDP growth slowed slightly in 3Q14 to 0.7% YoY from 0.8% in 2Q14, according to Rosstat, implying a moderate 0.4% sequential rebound (SA QoQ).
Monthly indicators suggest there were several opposing forces at play:
Execution of defence orders as seen in a surge of undisclosed output across transportation machinery manufacturing industries.
Construction of the Power of Siberia pipeline, as seen in the sustained
Import substitution on a weaker rouble, as well as tighter trade restrictions;
Aggressive destocking after a protracted period of inventory accumulation, particularly in
Massive decline in gas exports (26% in 3Q) on lengthy price negotiations with Ukraine and soft demand from Europe.
Overall, it looks as though the Russian economy continued to muddle through at a meagre pace of growth, propped by state sector and net exports.
The outlook for