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Russia’s GDP up by 5% year-on-year in July 2023 — Economic Development Ministry

The ministry also drew attention to the growth in investment activity in the second quarter, which turned out to be significantly higher than expected and forecast estimates

MOSCOW, August 30. /TASS/. Russia's GDP increased by 5% year-on-year in July 2023, the Economic Development Ministry stated in the review of the current situation in the national economy.

"In annual terms, GDP growth exceeded the level of last year by 5.0% (+5.7% in June), and the level of two years ago by 0.8% (+0.3% in June). In general, for 7 months 2023, GDP grew by 2.1% (1.6% in the first half of 2023)," the review notes.

According to the forecast of the Economic Development Ministry, the Russian economy is expected to grow by 1.2% in 2023. However, Economic Development Minister Maxim Reshetnikov said that the forecast could be revised for the better and the growth figure for the year would exceed 2%. The ministry may present an updated forecast in the near future.

The ministry also drew attention to the growth in investment activity in the second quarter, which turned out to be significantly higher than expected and forecast estimates.

As reported, growth in real terms amounted to 12.6% compared to the level of the second quarter of last year, and the total investment reached 7 trillion rubles ($72.8 bln).

"There is also a significant increase to the level of two years ago," Deputy Economic Development Minister Polina Kryuchkova as quoted by the ministry’s press service.

"Budget sources continue to support high activity (15.2%). At the same time, support comes from the federal budget through the implementation of large infrastructure projects, and thanks to the activation of investments from the regions," she added.

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