Russian economic development reaches 5.4 percent
Date
5/20/2024 4:18:25 AM
(MENAFN) In a preliminary report released by the state statistics agency Rosstat, Russia's gross domestic product (GDP) recorded a remarkable year-on-year growth of 5.4 percent in the first quarter of 2024. The data reveals a robust expansion across key sectors, including a notable uptick in retail turnover by 10.5 percent, manufacturing by 8.8 percent, and construction by 3.5 percent during the period spanning January to March.
The latest figures from Rosstat not only align with earlier estimates from the Economics Ministry but also surpass projections set by the bank of Russia and analysts' expectations. However, a more comprehensive breakdown of GDP data is anticipated to be unveiled by mid-June, offering deeper insights into the drivers behind the economic surge.
Despite facing multiple rounds of Western sanctions imposed in response to Russia's military operations in Ukraine since February 2022, the Russian economy has demonstrated resilience and continued growth momentum. These sanctions, which have targeted Russian banks, restricted access to the SWIFT interbank messaging system, and frozen significant portions of Russian foreign exchange reserves totaling around USD300 billion, have not deterred Russia's economic resilience and growth trajectory.
Looking ahead, the Bank of Russia anticipates a potential slowdown in GDP growth during the second quarter due to tightening fiscal conditions. Nevertheless, the regulator remains optimistic about sustained high levels of consumer and investment demand, which are expected to underpin economic growth in the foreseeable future.
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