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. Last Updated: 07/27/2016

Investment Spurs Economic Expansion

The economy grew 7.8 percent in November, bringing the growth rate for the first eleven months of last year to 6.8 percent, the Economic Development and Trade Ministry said in an economic review released Thursday.

Investment and rising output in construction and trade were behind the higher growth, offsetting a slower pace in exports as prices for oil and other commodities grew at a slower rate.

"Taking into account slowing exports, the economic growth is more oriented towards meeting domestic demand," the ministry said in the report.

Investments grew 15.2 percent in November compared with 15.0 percent in October and 14.2 percent in January-November 2006.

The construction industry grew 14.2 percent in January-November compared with 9.8 percent in 2005, while 13.3 percent growth in real wages led to a 12.8 percent growth in retail trade.

"Investment and an increasing domestic demand will continue to be a defining factor for Russian economic growth in the near term," the ministry said.

The ministry also said that investments rose due to higher capacity usage by domestic enterprises.

The ministry said 26 percent of all investments went to transport and communication industries, 19 percent to mineral extraction and 18 percent to manufacturing.

The State Statistics Service will release its first estimates for last year's gross domestic product growth in February.