Russia’s Economy Faces Slowing Growth, but Dodges Recession

(MENAFN) Russia’s economy isn’t in a recession but is gradually losing momentum after a phase of accelerated growth, a senior Bank of Russia official stated.

Speaking to business leaders in Novosibirsk and the surrounding area on Tuesday, Andrey Gangan, who heads the central bank's Monetary Policy Department, clarified the current state of the economy.

"We are clearly not seeing a recession now, we are seeing a gradual slowdown in growth rates," Gangan said. "We understand that we are at a turning point in terms of cooling economic activity and a shift in inflationary trends."

Addressing speculation in public and expert circles that the country is already in recession, Gangan dismissed such interpretations as premature.

"Yes, the economic situation is currently highly uneven. There are sectors where output is declining, such as ferrous metallurgy, the oil and gas industry, and certain areas of civil engineering -- sectors that had previously seen very high growth in recent years," he explained.
"What we are seeing is a correction from high growth."

Despite challenges in some industries, Gangan pointed out that several areas continue to expand, highlighting ongoing momentum in pharmaceuticals, industrial equipment manufacturing, and specific branches of the chemical sector.

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