This article is from the source 'rtcom' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.rt.com/russia/529086-gdp-growth-post-pandemic/
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Russia less reliant on oil & gas as economic recovery in other sectors fuels country’s rapid return to growth, new report reveals | Russia less reliant on oil & gas as economic recovery in other sectors fuels country’s rapid return to growth, new report reveals |
| (about 2 months later) | |
| While the stereotype is that Russia measures the size of its economy not in rubles but in barrels, a recent rally has seen the country on track for significant growth, with oil and gas making up a smaller fraction than before. | While the stereotype is that Russia measures the size of its economy not in rubles but in barrels, a recent rally has seen the country on track for significant growth, with oil and gas making up a smaller fraction than before. |
| New analysis by state statistical agency Rosstat, published on Tuesday, found that oil and gas made up only around 15% of the country’s official gross domestic product (GDP) at the beginning of this year. This represents a marked decrease from the previous 12 months, when the sector accounted for more than 19% of turnover. | New analysis by state statistical agency Rosstat, published on Tuesday, found that oil and gas made up only around 15% of the country’s official gross domestic product (GDP) at the beginning of this year. This represents a marked decrease from the previous 12 months, when the sector accounted for more than 19% of turnover. |
| This means that, at the end of the first year of the coronavirus pandemic, oil and gas were responsible for an added value of around 16.3 trillion rubles ($220 billion). | This means that, at the end of the first year of the coronavirus pandemic, oil and gas were responsible for an added value of around 16.3 trillion rubles ($220 billion). |
| Earlier this month, the Ministry of Economic Development in Moscow upgraded its macroeconomic forecast for the period leading up to 2024. According to officials, GDP growth over the course of 2021 will compensate for the hit that the economy took from Covid-19 in 2020, and the rise in GDP will not fall below 3% annually in that period. Manufacturing, chemicals and heavy industry are understood to be driving the positive data. | Earlier this month, the Ministry of Economic Development in Moscow upgraded its macroeconomic forecast for the period leading up to 2024. According to officials, GDP growth over the course of 2021 will compensate for the hit that the economy took from Covid-19 in 2020, and the rise in GDP will not fall below 3% annually in that period. Manufacturing, chemicals and heavy industry are understood to be driving the positive data. |
| GDP levels are, however, notoriously unreliable in Russia and its international rankings are quickly bolstered when adjusted for purchasing power parity, which makes Moscow the world’s sixth-largest economy. Given that Russia purchases much of its key infrastructure and defense capabilities from within the country, paying in rubles, many analysts have warned that assessing it in dollar terms distorts the picture. | GDP levels are, however, notoriously unreliable in Russia and its international rankings are quickly bolstered when adjusted for purchasing power parity, which makes Moscow the world’s sixth-largest economy. Given that Russia purchases much of its key infrastructure and defense capabilities from within the country, paying in rubles, many analysts have warned that assessing it in dollar terms distorts the picture. |
| Likewise, significant numbers of transactions in Russia, as with most former Soviet states, are part of the informal economy, or in the black and grey markets. As a result of cash-in-hand payments and tax evasion, it is likely that the nation’s markets are far larger than routinely estimated. | Likewise, significant numbers of transactions in Russia, as with most former Soviet states, are part of the informal economy, or in the black and grey markets. As a result of cash-in-hand payments and tax evasion, it is likely that the nation’s markets are far larger than routinely estimated. |
| Despite the positive outlook, inflation and price growth continues to be a major challenge for Russian consumers, particularly combined with slow salary growth. A survey of more than 3,500 people by research firm Romir, published in May, found that around 55% of respondents said they were feeling worried, with five of the 10 most common causes for concern related to finances. | Despite the positive outlook, inflation and price growth continues to be a major challenge for Russian consumers, particularly combined with slow salary growth. A survey of more than 3,500 people by research firm Romir, published in May, found that around 55% of respondents said they were feeling worried, with five of the 10 most common causes for concern related to finances. |
| Like this story? Share it with a friend! | Like this story? Share it with a friend! |
| Dear readers and commenters, | |
| We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system. | |
| Sorry for the inconvenience, and looking forward to your future comments, | |
| RT Team. |