Russia’s economy will expand by 4% this year after contracting less than the international economy a year earlier, President Vladimir Putin said at the St Petersburg International Economic Forum (SPIEF) on June 4.
“In 2020, the Russian economy contracted less than the global economy. This year, we will achieve growth of around 4%,” he said, adding that the country showed resilience to external shocks in spite of all challenges and difficulties. Currently the official forecast is for 2.9% growth this year.
However, the Russian economy is recovering faster than expected.
Economic Development Minister Maxim Reshetnikov told reporters that the economy had increased by 10.7% on the year in April 2021.
The economy contracted by a little more than 2% in both January and February, but grew by a modest 0.5% in March. Cumulatively the economy contracted in the first quarter, but after the strong result in April the economy expanded by 1.8% year on year over the first four months of this year, according to a report released by the Economic Development Ministry.
Reshetnikov said the economy was recovering faster than expected. The ministry will change the GDP growth forecast for 2021 from the current 2.9% if the positive trend remains, Reshetnikov said.