In Russia agricultural output to grow by 1% in 2018

The ministry of agriculture expects the sector to post 1% growth in 2018, minister Patrushev told journalists on Wednesday. He noted progress with import substitution, which has resulted in higher output of fruits and vegetables, meat and milk. The ministry hopes that this will offset the weaker grain harvest expected this year due to unfavorable weather conditions. We remind that agriculture was the main factor behind weak GDP growth performance in August. The sector shrank by 10.8% y/y in August alone, which caused a decline of 2.6% y/y for Jan-Aug. We expect similar or worse performance in September and doubt that improvements elsewhere will be able to offset the large impact from the grain harvest.

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