. Last Updated: 07/27/2016

Drop in GDP Blamed on Election


Russia's economy continued to shrink in the first half of 1996, with production dipping more sharply than expected because of uncertainty before the July 3 presidential poll, the government said Monday.

Gross domestic product was down 5 percent in the first half of 1996 from the same period in 1995, said the State Statistics Committee.

Industrial output in February was down 4 percent from the year-earlier period.

Hardest hit was the textile industry, where production fell by 26 percent, and the construction materials industry, where production dropped by 25 percent, compared with the first half of 1995.

All the figures are adjusted for inflation.

The government had forecast that GDP would stabilize this year after declining 4 percent during 1995. Officials chalked up the decline to uncertainty before the presidential elections. ()