Russia's economic growth increases by 3.7%

Russia's economic growth increases by 3.7%

Russia’s gross domestic product (GDP) rose 10.9% year-on-year in May, the economy ministry said on Thursday, as the oil-dependent economy continued its recovery from the pandemic shock of 2020.

In the first five months of 2020, GDP grew 3.7%, the ministry said, rebounding from the corresponding period of 2020, when the economy took a hit from a sharp drop in oil prices and lockdowns designed to limit the spread of the novel coronavirus.

“As a month earlier, non-commodity sectors, such as agriculture, construction, manufacturing gave the main support to GDP,” the ministry said in a statement.

It also revised April economic growth to 10.8% from a previously reported 10.7%.

The GDP figures underpin the general trend of economic rebound in Russia after GDP contracted by 3% in 2020, its sharpest in 11 years.

This year, the economy is expected to expand by around 3%, the economy ministry predicts, while the central bank expects GDP to grow by 3%-4%.