Karelia is among the regions with the highest rate of economic development

RIA Rating agency experts analyzed socioeconomic situation in the subjects of the Russian Federation over the first half of 2018.

During the first half of the year, the Republic of Karelia moved from the 73rd to the 11th place among 85 regions of the Russian Federation in terms of industrial production rate, retail trade turnover and the volume of construction work.

Due to the growth of the performed work volume by 50.5%, Karelia was ranked as a region with the 9th highest construction project performance index.

Karelia also became one of the top ten regions with the largest non-repayable revenue increase and the largest growth rate of the consolidated budget revenues over the first five months of 2018.

It should be noted that during the first half of 2018, retail trade turnover increased in all federal districts. Salary and wage growth, as well as consumer lending increase contribute to the persistent positive dynamics of retail sales. In particular, the volume of lending to individuals grew by about 2% in May and by 1.8% in July. During the first five months of 2018, citizens' actual cash incomes increased by 2.5% (taking into account a 5000 ruble lump sum payment to pensioners in January of 2017), while nominal wages grew by 11.6% and unemployment rate fell to 4.8%.

RIA Rating agency analysts believe that the retail sector will maintain its positive dynamics, and by the end of 2018 the retail sales turnover in the Russian Federation could grow by 3-4%.

According to the Russian Ministry of Economic Development estimates, the country's GDP grew by 1.7% during the first half of 2018.