Russia's economy exhibited indications of development in July, based on new figures released by the state statistics service. The increased level of investments and larger volume of agricultural production may cause the Bank of Russia to ease down on its policies in a few weeks.
The month of July showed a jump at 2.5% after months of unexceptional growth in the market. Compared to the 9.5% rate of July of 2012, economists say that the change is still unremarkable.
Low investment in the country slowed down Russia's economy. Hopefully, the good agricultural harvest may help the country fight back inflation for the mean time.
According to the government's figures, industrial production dropped to 0.7% in July as compared to last year's 3.4% growth. Real wages are also significantly lower than last year with 6.6% compared to the 8.1% in 2012. Consumer prices, on the other hand, added another 6.5% compared to that of last year.
Mr. Morozov, an official from HSBC Bank of Russia said,"Downward trend in the Russian economy has not stopped, agriculture just hides this trend for now,"
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