According to Russia’s Ministry of Economy, the country’s GDP was greater in August than it was before the epidemic. According to the agency, the indicator climbed by 3.7 percent year on year at the end of the summer, Kommersant reports.
“GDP remained above pre-pandemic levels in August, according to projections (+0.4 percent to Q4 2019, seasonally adjusted). According to calculations, GDP growth in August was 3.7 percent y/y (vs. July 2019: + 0.1 percent), and in January-August was 4.7 percent y/y (+1, 0 percent by August of 2019),” according to the Ministry of Economy’s assessment.
Domestic demand continues to drive the economy, but net exports, according to the government, contribute negatively to GDP.
“The primary cause is a quicker growth in the physical volume of merchandise imports relative to exports. The current agreements within the framework of the OPEC + accord limit the recovery of physical amounts of oil and gas exports. At the same time, non-resource non-energy exports are growing steadily,” according to the paper.
Russia’s GDP growth is expected to be about 4%, according to President Vladimir Putin. GDP growth is expected to be 3.8 percent in 2021, according to the Ministry of Economy’s updated macro projection till 2024. After the crisis, the ministry expects the figure will not dip below 3% each year.
