Despite forecasts of a steeper drop, GDP saw a year-on-year decline of 2.2% in the first quarter of 2023
© Getty Images / Tim Bieber
Russia’s economy posted a better than expected 2.2% GDP drop from January through March in annual terms, statistics from the Economy Ministry have shown.
According to the ministry, the Russian economy shrank by 1.1% year-on-year in March, an improvement on a revised 2.9% decline in February.
GDP is expected to rebound marginally in 2023 from a 2.1% annual decline last year due to Western sanctions.
Ministry data seen by local media in April showed that the economy is forecast to grow 1.2% this year. Next year, the GDP growth rate is expected to reach 2%, accelerating to 2.8% by 2026.
According to estimates released by the Bank of Russia at the end of last month, the economy will grow by up to 2% this year, supported by improving domestic demand and the adaptation to sanctions
READ MORE: Bank of Russia raises economic forecast
In April, the World Bank and the International Monetary Fund (IMF) both raised their growth forecasts for the Russian economy. According to the IMF, Moscow was “able to maintain quite a bit of momentum in the economy by taking very strong fiscal measures.”
The fund forecasts Russian output in 2027 to be around 8% lower than predicted before the start of the military operation in Ukraine.
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