Russian economy growing by 5%

Russian economy growing by 5%

Russian President Vladimir Putin delivers a speech at the St. Petersburg International Economic Forum in St. Petersburg. -/Kremlin/dpa

The Russian economy is growing by around 5%, based on the increase in gross domestic product (GDP) over the first half, Russian President Vladimir Putin said on Friday according to the Interfax news agency.

“We will see what the first half brings, but something around 5% growth for the country’s GDP,” Putin said at a gathering of university graduates.

Western sanctions have in fact failed to put a brake on the Russian economy. According to the Rosstat statistical office, GDP rose by 5.4% in the first quarter.

The growth has been attributed primarily to a sharp rise in state expenditure on armaments and the military, with salaries and payments to the families of the fallen and injured boosting income to many families.

Labour shortages are also leading to rising pay. Analysts have queried whether the trend is sustainable.

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