Monday, 20 September 2021 11:37 GMT

Russia: Finance ministry projects economy to expand 4 pct in 2021

(MENAFN) On Wednesday, Aug. 4 Vedomosti newspaper said in a report, quoting officials that the Russian Ministry of Finance is expecting stable GDP expansion of over 4 percent this year, while increasing the prospect for inflation to over 5 percent.

A letter by the Russian Deputy Finance Minister Vladimir Kolychev to Deputy Prime Minister Dmitry Grigorenko said as cited by the news: “the trajectory of recent months indicates even more optimistic recovery dynamics and a possible acceleration of economic growth rates above 4% per annum.”

The country’s gross domestic product (GDP) has already soared by 4.6 percent during the January-June period of this year, hitting the pre-coronavirus level in line with the October-December period of 2019. That figure indicated expansion of 8.5 percent in yearly terms – the speediest expansion the country’s economy has witnessed since 2012. Average year-on-year expansion in 2014-2019 was below 0.5 percent and dropped 3.1 percent last year.

Preciously in August, the Russian economy ministry set the GDP expansion prospects for this year at 3.8 percent and inflation at 5 percent. Still, the finance ministry notes that inflation may well surpass these expectations, supporting the Russian central bank, which recently expected the index to hit as much as 6.2 percent by the end of this year.

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