Russian economy returns to growth in second quarter

The Russian economy returned to growth in the second quarter, according to preliminary estimates from Rosstat. The GDP grew by 1.3% on an annual basis, a notable shift from the 0.2% contraction recorded in the first quarter. This performance exceeded the initial forecasts of 0.8% to 0.9% set by the Ministry of Economic Development and the Central Bank.

Minister of Economic Development Maxime Reshetnikov attributed this recovery to coordinated fiscal and monetary policies, as well as a resurgence in private consumption. He noted that households and businesses are increasingly utilizing accumulated resources, such as savings deposits, to drive demand.

Key sectors contributing to the growth include retail trade (+7.2%), catering (+6.2%), freight transport (+2.5%), wholesale trade (+2.4%), and manufacturing (+2%). Conversely, sectors such as passenger traffic, mining, construction, and agriculture experienced declines during the same period.