Russian economy sees resilience with GDP growing 5.4 percent in Q1

(MENAFN) Recent data released by Russian authorities indicate a robust performance for the country's economy, with gross domestic product (GDP) witnessing a significant year-on-year increase of 5.4 percent in the first quarter. This expansion follows a growth of 4.9 percent in the preceding quarter, showcasing a notable acceleration in economic activity. It marks a stark contrast to the 1.6 percent contraction experienced in the first quarter of the previous year, underlining a remarkable turnaround in economic fortunes.

Initial expectations from the Ministry of Economy and Central bank estimates hinted at slightly varied growth projections for the first quarter, with the former anticipating approximately 5.4 percent growth, while the latter suggested a marginally lower figure of 4.6 percent. However, analysts polled by Reuters had envisaged a slightly lower increase of 5.3 percent year-on-year, underscoring the consensus around the positive trajectory of Russia's economic performance.

Looking ahead, the Central Bank of Russia foresees a moderation in GDP growth to 4.4 percent in the second quarter compared to the corresponding period last year. This anticipated slowdown is attributed to the implementation of monetary policy tightening measures aimed at addressing inflationary pressures and ensuring economic stability.

In a notable development, both the Ministry of Economy and the Central Bank revised their GDP growth forecasts for the full year 2024, reflecting a more optimistic outlook. The Ministry raised its projection from 2.3 percent to 2.8 percent, signaling confidence in the economy's resilience and potential for sustained growth. Similarly, the Central Bank adjusted its growth forecasts to a range of 2.5 to 3.5 percent, up from the previous range of one to two percent, further underscoring a positive sentiment towards Russia's economic prospects.

Russian Finance Minister Anton Siluanov echoed a similarly upbeat sentiment, offering the most optimistic forecast for the current year with expectations of approximately 3.6 percent growth, mirroring the performance of the previous year. This optimistic outlook from key stakeholders reflects a collective confidence in Russia's economic trajectory and underscores efforts to navigate challenges and capitalize on emerging opportunities. 



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