Russian GDP Growth above 4% in 2021, Officials Estimates

According to the Russian Finance Ministry’s estimates, GDP will expand by more than 4% in 2021, but inflation will rise by more than 5%, the Vedomosti newspaper said on Wednesday, citing a letter from Deputy Finance Minister Vladimir Kolychev to Deputy Prime Minister Dmitry Grigorenko.

The Finance Ministry does not share the Economic Development Ministry’s forecast of up to 3.8 percent GDP growth and 5 percent inflation in 2021.

“The trajectory of recent months shows even more positive recovery dynamics and a probable acceleration of economic growth rates over 4% per year,” Kolychev was cited as saying in the article.

Furthermore, according to the letter, the ministry anticipates Russian inflation to be significantly higher than 5% by the end of the year.

Previously, the Bank of Russia predicted that inflation would be 5.7-6.2 percent by the end of 2021.