Russia’s economic growth speeds up to nearly 11% in May

Russia’s gross domestic product (GDP) saw a year-on-year growth of 10.9% in May as the country gradually recovers from the Covid-19 pandemic, the economy ministry announced on Thursday.

According to the ministry, May’s growth rate is mainly attributed to the low acceleration recorded during the same period a year ago, when tight Covid-related restriction were in force.

Thus, the growth rate is not regarded as a useful indicator. The ministry instead opted to compare the current growth to the fourth quarter of the pre-pandemic year 2019.

“Seasonally adjusted gap with the pre-pandemic level in May narrowed to 0.3%,” the report said.

The ministry also upgraded April’s economic growth to 10.8%, from the previously reported 10.7%.

The country’s GDP is mostly boosted by non-energy sectors, including the agriculture, manufacturing, and construction industries, all of which demonstrated an output growth of 3% compared to the pre-pandemic period.

“Despite a slight slowdown in May 2021, recovery in consumer activity continues. Retail turnover is estimated to have exceeded the pre-pandemic level by 1.1%,” the ministry report added.

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