Bloomberg has forecast that the Russian economy will return to growth in the second quarter of this year, avoiding recession despite the pressures of high interest rates.
According to Bloomberg, Russia’s GDP grew by 1.5 percent year-on-year in Q2, meaning it avoided a second consecutive quarter of contraction and thus evaded a so-called “technical recession.” This rebound indicates a soft landing for the economy despite growing corporate concerns over the high cost of borrowing and weaker demand under the Central Bank of Russia’s tight monetary policy.
Most of the current economic momentum is driven by government spending, particularly in the military sector, while other sectors of the economy continue to slow.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
