Russian economy continues to rebound with huge surge in May

Russia’s gross domestic product (GDP) expanded 10.7% year-on-year in April, according to the Ministry of Economic Development, which projected an “anomalously high” GDP growth for May.

Although the economy is recovering faster than expected, it makes more sense to compare its pace with the 2019 level, Minister of Economic Development Maxim Reshetnikov told newspaper Izvestia. The ministry forecasts a 2.9% economic growth for this year.

“It is quite natural that GDP data for May will be abnormally high when compared to May 2020 when the restrictions were still quite tough,” Reshetnikov said, adding that “The economy is recovering better than expected, showing stability.”

Such positive dynamics should be supported by “systemic changes and new investment projects,” the minister added. He pointed out that the major risk factor for the Russian economy is the state of the world economy, which lately has been subject to fluctuations.

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