Consumer demand and Russian exports supported by FIFA World Cup

According to the Bank of Russia estimates, the annual GDP growth rate went up to 1.8-2.2% in Q2. As stated in the latest issue of the Bank of Russia’s information and analytical commentary ‘Economy: Facts, Assessments and Comments’, Q2 GDP growth was spurred by the investment and consumer demand with the 2018 FIFA World Cup held in Russia also making its contribution.

Fixed capital investments kept growing on a month-on-month (seasonally adjusted) basis in June. Based on 2018 Q2 results, their annual growth rate is estimated at 2.5-3.5%.

Households’ final consumption expenditures increase gradually without posing any risks for inflation. Retail trade turnover registered accelerated growth in June. The 2018 FIFA World Cup made a positive contribution (ca. 0.2 pp. YoY) to it with public catering and such services as hotels and public transport being the largest beneficiaries.

The increased demand for domestic products and services by foreign football fans also supported exports. Estimates suggest that export quantities grew in 2018 Q2 by 5-6% YoY.