(MENAFN- Trend News Agency) Russia's economic activity continued to pick up in Q1 2023,
according to high-frequency data, the Central Bank said in a press
release following its board meeting on Friday, trend reports with reference
to tass .
'In 2022, GDP declined 2.1%, which is better than the February
estimate by the Bank of Russia. High-frequency data for the first
quarter of 2023 show that economic activity continues to pick up.
Growing domestic demand is supporting an improvement in business
sentiment despite some deterioration of the external environment,'
the regulator said.
Meanwhile, the current capacity to expand production in the
Russian economy is largely limited by the labor market.
'Unemployment dropped to a new low. Labor shortages are
increasing in many industries amid the effects of the partial
mobilization as growth in businesses' demand for labor continues.
In these circumstances, productivity growth can lag behind real
wage growth,' the Central Bank said.
Earlier, the regulator revised its GDP growth expectations for
2023 and it currently projects it from -1% to 1% compared with
contraction by 1-4% expected previously.
In 2023, Russia's economic recovery is expected to continue,
with growth accelerating to 0.5-2.5%, whereas by 2025 it is likely
to stabilize at 1.5-2.5%, according to the Bank of Russia.
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