Growing 4 quarters in a row: the Russian economy is restored despite sanctions - Bloomberg

According to journalists, in 2024, the Russian economy can return to pre-war level, and in 2025-grow by another 1-2%. The Russian economy is gradually recovering, despite the sanctions imposed by the West. Moreover, it can return to the pre-war level as early as 2024. About it writes Bloomberg. According to journalists, the desire of officials in the Kremlin to strengthen the recruitment of Russians to service in the army for war against Ukraine can worsen the situation.

GDP data indicates that Russia's economy has grown four quarters in a row after a recession more than 4% a year ago. The increase in defense costs has led to an increase in industrial production, while consumer demand is gaining momentum against the background of increasing the cost of social support and increasing wages. The publication writes that the Bank of Russia has recently increased its annual growth forecast to 1. 5-2.

5% for the 2023th year, noting that production volume in most sectors focused on domestic demand, has reached or even exceeded the pre-war level. The following year, an increase of 0. 5-2. 5%is projected, and in 2025-1-2%. On the other hand, problems for the Russian economy can increase due to lack of labor. Export revenues are also steadily reduced, although import flows remain stable.

We will remind that on August 9 the media wrote that the Russian ruble got to the top three of the worst currencies among developing markets. The head of the central bank Elvira Nabiullin has repeatedly indicated the deterioration of foreign trade conditions as the main reason for the collapse of the ruble. According to journalists, in June 2023, large Russian exporters sold 84% of their foreign exchange earnings on the market. But their income decreased to $ 6. 9 billion in July.