Russia’s GDP Records 4.9% Year-On-Year Growth in Q2 2023, Marking a Positive Turn
In a notable reversal, Russian economy exhibited year-on-year growth of 4.9% during the second quarter of 2023, as reported by the country’s statistics agency Rosstat on Friday. This promising expansion marks the first instance of growth in the span of a year.
Following four consecutive quarters of contraction, including a 1.9% dip in the first quarter of 2023. These improved figures for April to June provide a glimmer of optimism. When juxtaposed against the same period in the previous year. Which saw a GDP decline of 4.5%, the turnaround becomes evident.
This positive development follows a period of economic challenges triggered by a series of sanctions imposed by Western nations due to Russia’s activities in Ukraine. Despite this growth, the Russian economy remains smaller than its pre-conflict state in February 2022.
Unfortunately, the recent report from Rosstat does not offer a sector-wise breakdown of the growth data.
The second quarter also witnessed a rise in Russian inflation, partly attributed to the ruble’s weakened position. The currency stood at 108 rubles against the euro and 99 rubles against the dollar on Friday.
In response to the economic hardships, the Russian central bank took measures to stabilize the situation, increasing the benchmark interest rate to 8.5%. The move aims to bolster the ruble’s strength and curb inflationary pressures.