Post Recession Bounce Hides Old Trick For Russia's Economy
Russia’s economy expanded at the fastest pace in more than three years after exiting its longest recession this century, and analysts say the most likely driver is an old one -- consumer demand.
Gross domestic product grew 2.5 percent last quarter from a year ago, the Federal Statistics Service said Friday, citing preliminary estimates. That outstrips the 1.7 percent growth forecast by economists, according to a Bloomberg survey. The Economy Ministry estimated output >increased 2.7 percent in the period.
“Consumption has most likely started to recover after lending began improving,” said Natalia Orlova, chief economist at Alfa Bank in Moscow. “Also there is the weather factor, which accelerated industrial production.”
The statistics service doesn’t give details of growth contributors in its preliminary reports.