Russia exited a recession last quarter, the Economy Ministry said, as a gauge tracking the nation’s manufacturing industry unexpectedly rose to a four-year high in October.
Seasonally adjusted growth in gross domestic product reached 0.1 percent in the third quarter from the previous three months, the ministry’s press office said by e-mail on Tuesday. That ends a period of decline that the state development lender Vnesheconombank estimates lasted for eight quarters. A technical recession is commonly defined as at least two consecutive quarters of contraction.
“The economy has turned the corner,” Ravi Bhatia, director for sovereign ratings at S&P Global Ratings, said at a conference in Moscow on Tuesday. “We expect the return to positive real GDP growth in 2017-2019. And this, hopefully, will be the last year of economic contraction.”
Rising production among manufacturers and domestic orders outweighed a continued decline in new business from abroad. The manufacturing gauge rose to 52.4, a third consecutive month of expansion, from 51.1 in September, according to a statementreleased by Markit Economics on Tuesday.