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Russian economy recovering quickly from pandemic hit

The Russian economy showed record growth in the second quarter of 2021. The country´s GDP in the second quarter of 2021 showed an increase of 10.3% over the same period last year.


The economy of the Russian Federation has grown compared to the pre-pandemic period, showing an increase of 1.7% in comparison to the second quarter of 2019, according to preliminary data from Rosstat. The last time such an active economic growth was recorded was in 2000, when in the third quarter GDP grew by 10.5%.


The Ministry of Economic Development previously talked about GDP growth in the II 2021 quarter by 10.1%. The updated estimate will be presented on September 10.


In the first 3 months of this year, the Russian economy contracted by 0.7%, and in 2020, against the backdrop of the COVID crisis, GDP fell by 3 % in total.


The Bank of Russia forecasts economic growth to reach 4,0 – 4,5 percent in 2021 and 2,0 – 3,0 percent in 2022 and 2023.


Inflation expectations have risen in Russia this year, following a global trend. The Bank of Russia reported a 6,5 % annual inflation estimate in July. In late July, the central bank also increased base rates by 100 basis points to 6,5 % following inflation concerns. Currently, the bank is expecting inflation rates to settle around 4 % in the years following 2021.


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