Russian GDP growth accelerates to 5.2% in Q3 from 4.9% in Q2 - Econ Ministry

MOSCOW. Nov 2 (Interfax) - Russia's GDP grew by an estimated 5.2% year-on-year in September after expanding by 5.2% in August, 5.1% in July, 5.7% in June, 5.8% in May and 3.6% in April and contracting by 0.7% in March, 2.6% in February and 2.7% in January, the Economic Development Ministry said in a report on the current situation in the economy published on Wednesday.

GDP growth accelerated to 5.2% year-on-year in the third quarter from 4.9% in the second quarter, the ministry estimated. GDP contracted by 1.8% in the first quarter.

The ministry estimated that the economy grew by 2.8% year-on-year in the first nine months of 2023.

GDP in September grew by a seasonally adjusted 0.3% from the previous month after expanding by 0.4% in August, the ministry estimated.

"In the estimate of the Economic Development Ministry of Russia, in September 2023 GDP exceeded the level of last year by 5.2% yoy, and the level of two years ago by 1.0% (by 2.4% in August). In the nine months of 2023 overall, GDP grew by 2.8% yoy (growth of 2.5% yoy for the eight months of 2023). Seasonally adjusted GDP growth amounted to 0.3% mom [in September] after growth of 0.4% mom a month earlier," the report said.

In September, the ministry raised its forecast for the country's economic growth to 2.8% this year from the 1.2% projected in its April forecast. The Central Bank of Russia raised its 2023 growth forecast last week to 2.2%-2.7% from 1.5%-2.5%.

In 2024, the ministry expects GDP to expand by 2.3%, while the Central Bank forecasts growth of only 0.5%-1.5%.